Correlation Between CHINA TONTINE and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and GOLD ROAD 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 GOLD ROAD 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 GOLD ROAD RES, you can compare the effects of market volatilities on CHINA TONTINE and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and GOLD ROAD.
Diversification Opportunities for CHINA TONTINE and GOLD ROAD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and GOLD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and GOLD ROAD go up and down completely randomly.
Pair Corralation between CHINA TONTINE and GOLD ROAD
If you would invest 113.00 in GOLD ROAD RES on September 26, 2024 and sell it today you would earn a total of 9.00 from holding GOLD ROAD RES or generate 7.96% 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. GOLD ROAD RES
Performance |
| Timeline |
| CHINA TONTINE WINES |
| GOLD ROAD RES |
CHINA TONTINE and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and GOLD ROAD
The main advantage of trading using opposite CHINA TONTINE and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| CHINA TONTINE vs. INSURANCE AUST GRP | CHINA TONTINE vs. Apollo Investment Corp | CHINA TONTINE vs. JLF INVESTMENT | CHINA TONTINE vs. Virtus Investment Partners |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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