Correlation Between CK Hutchison and DMCI Holdings
Can any of the company-specific risk be diversified away by investing in both CK Hutchison and DMCI Holdings 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 CK Hutchison and DMCI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK Hutchison Holdings and DMCI Holdings ADR, you can compare the effects of market volatilities on CK Hutchison and DMCI Holdings 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 CK Hutchison with a short position of DMCI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Hutchison and DMCI Holdings.
Diversification Opportunities for CK Hutchison and DMCI Holdings
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between CKHUY and DMCI is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding CK Hutchison Holdings and DMCI Holdings ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DMCI Holdings ADR and CK Hutchison 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 CK Hutchison Holdings are associated (or correlated) with DMCI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DMCI Holdings ADR has no effect on the direction of CK Hutchison i.e., CK Hutchison and DMCI Holdings go up and down completely randomly.
Pair Corralation between CK Hutchison and DMCI Holdings
Assuming the 90 days horizon CK Hutchison Holdings is expected to generate 0.78 times more return on investment than DMCI Holdings. However, CK Hutchison Holdings is 1.28 times less risky than DMCI Holdings. It trades about 0.04 of its potential returns per unit of risk. DMCI Holdings ADR is currently generating about -0.03 per unit of risk. If you would invest 485.00 in CK Hutchison Holdings on September 1, 2024 and sell it today you would earn a total of 35.00 from holding CK Hutchison Holdings or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.54% |
| Values | Daily Returns |
CK Hutchison Holdings vs. DMCI Holdings ADR
Performance |
| Timeline |
| CK Hutchison Holdings |
| DMCI Holdings ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CK Hutchison and DMCI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Hutchison and DMCI Holdings
The main advantage of trading using opposite CK Hutchison and DMCI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Hutchison position performs unexpectedly, DMCI Holdings 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 DMCI Holdings will offset losses from the drop in DMCI Holdings' long position.| CK Hutchison vs. Swire Pacific | CK Hutchison vs. Marubeni | CK Hutchison vs. Sumitomo Corp ADR | CK Hutchison vs. Marubeni Corp ADR |
| DMCI Holdings vs. San Miguel | DMCI Holdings vs. Ayala | DMCI Holdings vs. Teijin | DMCI Holdings vs. Alliance Global Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |