Correlation Between Commercial International and Henderson Land
Can any of the company-specific risk be diversified away by investing in both Commercial International and Henderson Land 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 Commercial International and Henderson Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial International Bank and Henderson Land Development, you can compare the effects of market volatilities on Commercial International and Henderson Land 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 Commercial International with a short position of Henderson Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial International and Henderson Land.
Diversification Opportunities for Commercial International and Henderson Land
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Commercial and Henderson is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Commercial International Bank and Henderson Land Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson Land Devel and Commercial International 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 Commercial International Bank are associated (or correlated) with Henderson Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson Land Devel has no effect on the direction of Commercial International i.e., Commercial International and Henderson Land go up and down completely randomly.
Pair Corralation between Commercial International and Henderson Land
Assuming the 90 days horizon Commercial International Bank is expected to generate 1.14 times more return on investment than Henderson Land. However, Commercial International is 1.14 times more volatile than Henderson Land Development. It trades about 0.04 of its potential returns per unit of risk. Henderson Land Development is currently generating about 0.03 per unit of risk. If you would invest 116.00 in Commercial International Bank on August 31, 2024 and sell it today you would earn a total of 36.00 from holding Commercial International Bank or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commercial International Bank vs. Henderson Land Development
Performance |
| Timeline |
| Commercial International |
| Henderson Land Devel |
Commercial International and Henderson Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial International and Henderson Land
The main advantage of trading using opposite Commercial International and Henderson Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial International position performs unexpectedly, Henderson Land 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 Henderson Land will offset losses from the drop in Henderson Land's long position.| Commercial International vs. Bank Mandiri Persero | Commercial International vs. Turkiye Garanti Bankasi | Commercial International vs. BOC Hong Kong | Commercial International vs. Hang Seng Bank |
| Henderson Land vs. SM Prime Holdings | Henderson Land vs. Mitsubishi Estate Co | Henderson Land vs. Daito Trust Construction |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |