Correlation Between CHINA TONTINE and CHIBA BANK
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and CHIBA BANK 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 CHIBA BANK 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 CHIBA BANK, you can compare the effects of market volatilities on CHINA TONTINE and CHIBA BANK 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 CHIBA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and CHIBA BANK.
Diversification Opportunities for CHINA TONTINE and CHIBA BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and CHIBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and CHIBA BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIBA 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 CHIBA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIBA BANK has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and CHIBA BANK go up and down completely randomly.
Pair Corralation between CHINA TONTINE and CHIBA BANK
If you would invest 705.00 in CHIBA BANK on September 3, 2024 and sell it today you would earn a total of 75.00 from holding CHIBA BANK or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. CHIBA BANK
Performance |
| Timeline |
| CHINA TONTINE WINES |
| CHIBA BANK |
CHINA TONTINE and CHIBA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and CHIBA BANK
The main advantage of trading using opposite CHINA TONTINE and CHIBA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, CHIBA BANK 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 CHIBA BANK will offset losses from the drop in CHIBA BANK'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 |
| CHIBA BANK vs. TOTAL GABON | CHIBA BANK vs. Walgreens Boots Alliance | CHIBA BANK vs. Peak Resources Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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