Correlation Between China Resources and China Resources
Can any of the company-specific risk be diversified away by investing in both China Resources and China Resources 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 China Resources 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 China Resources Beer, you can compare the effects of market volatilities on China Resources and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and China Resources.
Diversification Opportunities for China Resources and China Resources
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and China is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Beer and China Resources Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Beer 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Beer has no effect on the direction of China Resources i.e., China Resources and China Resources go up and down completely randomly.
Pair Corralation between China Resources and China Resources
If you would invest 261.00 in China Resources Beer on September 2, 2024 and sell it today you would earn a total of 0.00 from holding China Resources Beer or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Resources Beer vs. China Resources Beer
Performance |
| Timeline |
| China Resources Beer |
| China Resources Beer |
China Resources and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and China Resources
The main advantage of trading using opposite China Resources and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| China Resources vs. Barfresh Food Group | China Resources vs. Fbec Worldwide | China Resources vs. Flow Beverage Corp | China Resources vs. Eq Energy Drink |
| China Resources vs. Tsingtao Brewery Co | China Resources vs. Budweiser Brewing | China Resources vs. Boston Beer | China Resources vs. Anheuser Busch Inbev |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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