Correlation Between China Resources and Conifer Holdings,
Can any of the company-specific risk be diversified away by investing in both China Resources and Conifer 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 China Resources and Conifer Holdings, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Resources Beer and Conifer Holdings, 975, you can compare the effects of market volatilities on China Resources and Conifer 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 China Resources with a short position of Conifer Holdings,. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and Conifer Holdings,.
Diversification Opportunities for China Resources and Conifer Holdings,
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Conifer is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Beer and Conifer Holdings, 975 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holdings, 975 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 Beer are associated (or correlated) with Conifer Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holdings, 975 has no effect on the direction of China Resources i.e., China Resources and Conifer Holdings, go up and down completely randomly.
Pair Corralation between China Resources and Conifer Holdings,
Assuming the 90 days horizon China Resources Beer is expected to generate 1.13 times more return on investment than Conifer Holdings,. However, China Resources is 1.13 times more volatile than Conifer Holdings, 975. It trades about -0.05 of its potential returns per unit of risk. Conifer Holdings, 975 is currently generating about -0.08 per unit of risk. If you would invest 310.00 in China Resources Beer on November 4, 2024 and sell it today you would lose (17.00) from holding China Resources Beer or give up 5.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
China Resources Beer vs. Conifer Holdings, 975
Performance |
| Timeline |
| China Resources Beer |
| Conifer Holdings, 975 |
China Resources and Conifer Holdings, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and Conifer Holdings,
The main advantage of trading using opposite China Resources and Conifer Holdings, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources position performs unexpectedly, Conifer 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 Conifer Holdings, will offset losses from the drop in Conifer Holdings,'s long position.| China Resources vs. Molson Coors Brewing | China Resources vs. Budweiser Brewing | China Resources vs. Boston Beer | China Resources vs. Anheuser Busch InBev SANV |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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