Correlation Between CHINA TONTINE and AUST AGRICULTURAL
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and AUST AGRICULTURAL 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 TONTINE and AUST AGRICULTURAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and AUST AGRICULTURAL, you can compare the effects of market volatilities on CHINA TONTINE and AUST AGRICULTURAL 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 TONTINE with a short position of AUST AGRICULTURAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and AUST AGRICULTURAL.
Diversification Opportunities for CHINA TONTINE and AUST AGRICULTURAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and AUST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and AUST AGRICULTURAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUST AGRICULTURAL and CHINA TONTINE 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 TONTINE WINES are associated (or correlated) with AUST AGRICULTURAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUST AGRICULTURAL has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and AUST AGRICULTURAL go up and down completely randomly.
Pair Corralation between CHINA TONTINE and AUST AGRICULTURAL
If you would invest 81.00 in AUST AGRICULTURAL on September 2, 2024 and sell it today you would earn a total of 2.00 from holding AUST AGRICULTURAL or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. AUST AGRICULTURAL
Performance |
| Timeline |
| CHINA TONTINE WINES |
| AUST AGRICULTURAL |
CHINA TONTINE and AUST AGRICULTURAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and AUST AGRICULTURAL
The main advantage of trading using opposite CHINA TONTINE and AUST AGRICULTURAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, AUST AGRICULTURAL 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 AUST AGRICULTURAL will offset losses from the drop in AUST AGRICULTURAL's long position.| CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. NMI Holdings | CHINA TONTINE vs. Origin Agritech | CHINA TONTINE vs. SIVERS SEMICONDUCTORS AB |
| AUST AGRICULTURAL vs. SIVERS SEMICONDUCTORS AB | AUST AGRICULTURAL vs. Darden Restaurants | AUST AGRICULTURAL vs. Reliance Steel Aluminum | AUST AGRICULTURAL vs. Q2M Managementberatung AG |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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