Correlation Between China Resources and LANDSEA GREEN
Can any of the company-specific risk be diversified away by investing in both China Resources and LANDSEA GREEN at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Resources and LANDSEA GREEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Resources Land and LANDSEA GREEN MANAGEMENT, you can compare the effects of market volatilities on China Resources and LANDSEA GREEN and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Resources with a short position of LANDSEA GREEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and LANDSEA GREEN.
Diversification Opportunities for China Resources and LANDSEA GREEN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and LANDSEA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Land and LANDSEA GREEN MANAGEMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LANDSEA GREEN MANAGEMENT and China Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Resources Land are associated (or correlated) with LANDSEA GREEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LANDSEA GREEN MANAGEMENT has no effect on the direction of China Resources i.e., China Resources and LANDSEA GREEN go up and down completely randomly.
Pair Corralation between China Resources and LANDSEA GREEN
If you would invest 268.00 in China Resources Land on September 24, 2024 and sell it today you would earn a total of 2.00 from holding China Resources Land or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Resources Land vs. LANDSEA GREEN MANAGEMENT
Performance |
| Timeline |
| China Resources Land |
| LANDSEA GREEN MANAGEMENT |
China Resources and LANDSEA GREEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and LANDSEA GREEN
The main advantage of trading using opposite China Resources and LANDSEA GREEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources position performs unexpectedly, LANDSEA GREEN can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LANDSEA GREEN will offset losses from the drop in LANDSEA GREEN's long position.| China Resources vs. DEUTSCHE WOHNEN ADRS12 | China Resources vs. CTP NV EO | China Resources vs. SEAZEN GROUP LTD | China Resources vs. Atrium Ljungberg AB |
| LANDSEA GREEN vs. China Resources Land | LANDSEA GREEN vs. DEUTSCHE WOHNEN ADRS12 | LANDSEA GREEN vs. CTP NV EO | LANDSEA GREEN vs. SEAZEN GROUP LTD |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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