Correlation Between China Sun and Ab Pennsylvania
Can any of the company-specific risk be diversified away by investing in both China Sun and Ab Pennsylvania 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 Sun and Ab Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Sun Grp and Ab Pennsylvania Portfolio, you can compare the effects of market volatilities on China Sun and Ab Pennsylvania 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 Sun with a short position of Ab Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sun and Ab Pennsylvania.
Diversification Opportunities for China Sun and Ab Pennsylvania
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and APAAX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Sun Grp and Ab Pennsylvania Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Pennsylvania Portfolio and China Sun 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 Sun Grp are associated (or correlated) with Ab Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Pennsylvania Portfolio has no effect on the direction of China Sun i.e., China Sun and Ab Pennsylvania go up and down completely randomly.
Pair Corralation between China Sun and Ab Pennsylvania
Given the investment horizon of 90 days China Sun Grp is expected to generate 188.83 times more return on investment than Ab Pennsylvania. However, China Sun is 188.83 times more volatile than Ab Pennsylvania Portfolio. It trades about 0.03 of its potential returns per unit of risk. Ab Pennsylvania Portfolio is currently generating about 0.07 per unit of risk. If you would invest 0.10 in China Sun Grp on September 3, 2024 and sell it today you would lose (0.10) from holding China Sun Grp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
China Sun Grp vs. Ab Pennsylvania Portfolio
Performance |
| Timeline |
| China Sun Grp |
| Ab Pennsylvania Portfolio |
China Sun and Ab Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sun and Ab Pennsylvania
The main advantage of trading using opposite China Sun and Ab Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sun position performs unexpectedly, Ab Pennsylvania 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 Ab Pennsylvania will offset losses from the drop in Ab Pennsylvania's long position.| China Sun vs. Curtis Mathes Corp | China Sun vs. alpha En | China Sun vs. Ieh Corp | China Sun vs. Methode Electronics |
| Ab Pennsylvania vs. T Rowe Price | Ab Pennsylvania vs. T Rowe Price | Ab Pennsylvania vs. John Hancock Funds | Ab Pennsylvania vs. T Rowe Price |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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