Correlation Between CITIC and CK HUTCHISON
Can any of the company-specific risk be diversified away by investing in both CITIC and CK HUTCHISON 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 CITIC and CK HUTCHISON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIC Limited and CK HUTCHISON HLDGS, you can compare the effects of market volatilities on CITIC and CK HUTCHISON 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 CITIC with a short position of CK HUTCHISON. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC and CK HUTCHISON.
Diversification Opportunities for CITIC and CK HUTCHISON
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CITIC and 2CKA is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Limited and CK HUTCHISON HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK HUTCHISON HLDGS and CITIC 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 CITIC Limited are associated (or correlated) with CK HUTCHISON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK HUTCHISON HLDGS has no effect on the direction of CITIC i.e., CITIC and CK HUTCHISON go up and down completely randomly.
Pair Corralation between CITIC and CK HUTCHISON
Assuming the 90 days horizon CITIC Limited is expected to generate 2.73 times more return on investment than CK HUTCHISON. However, CITIC is 2.73 times more volatile than CK HUTCHISON HLDGS. It trades about 0.01 of its potential returns per unit of risk. CK HUTCHISON HLDGS is currently generating about -0.39 per unit of risk. If you would invest 106.00 in CITIC Limited on November 4, 2024 and sell it today you would earn a total of 0.00 from holding CITIC Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Limited vs. CK HUTCHISON HLDGS
Performance |
| Timeline |
| CITIC Limited |
| CK HUTCHISON HLDGS |
CITIC and CK HUTCHISON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC and CK HUTCHISON
The main advantage of trading using opposite CITIC and CK HUTCHISON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC position performs unexpectedly, CK HUTCHISON 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 CK HUTCHISON will offset losses from the drop in CK HUTCHISON's long position.| CITIC vs. Kingdee International Software | CITIC vs. Cognizant Technology Solutions | CITIC vs. Casio Computer CoLtd | CITIC vs. CVR Medical Corp |
| CK HUTCHISON vs. DENTSPLY SIRONA | CK HUTCHISON vs. FAST RETAIL ADR | CK HUTCHISON vs. COSTCO WHOLESALE CDR | CK HUTCHISON vs. Costco Wholesale Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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