Correlation Between CHINA TONTINE and CDN IMPERIAL
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and CDN IMPERIAL 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 CDN IMPERIAL 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 CDN IMPERIAL BANK, you can compare the effects of market volatilities on CHINA TONTINE and CDN IMPERIAL 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 CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and CDN IMPERIAL.
Diversification Opportunities for CHINA TONTINE and CDN IMPERIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and CDN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK 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 CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between CHINA TONTINE and CDN IMPERIAL
If you would invest 4,189 in CDN IMPERIAL BANK on September 1, 2024 and sell it today you would earn a total of 1,930 from holding CDN IMPERIAL BANK or generate 46.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. CDN IMPERIAL BANK
Performance |
| Timeline |
| CHINA TONTINE WINES |
| CDN IMPERIAL BANK |
CHINA TONTINE and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and CDN IMPERIAL
The main advantage of trading using opposite CHINA TONTINE and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| CHINA TONTINE vs. ANDREW PELLER LTD | CHINA TONTINE vs. NAKED WINES PLC | CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. NMI Holdings |
| CDN IMPERIAL vs. Perseus Mining Limited | CDN IMPERIAL vs. ECHO INVESTMENT ZY | CDN IMPERIAL vs. LION ONE METALS | CDN IMPERIAL vs. GREENX METALS LTD |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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