Correlation Between CHINA TONTINE and Ambac Financial
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and Ambac Financial 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 Ambac Financial 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 Ambac Financial Group, you can compare the effects of market volatilities on CHINA TONTINE and Ambac Financial 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 Ambac Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and Ambac Financial.
Diversification Opportunities for CHINA TONTINE and Ambac Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and Ambac is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and Ambac Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambac Financial Group 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 Ambac Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambac Financial Group has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and Ambac Financial go up and down completely randomly.
Pair Corralation between CHINA TONTINE and Ambac Financial
If you would invest 1,130 in Ambac Financial Group on September 23, 2024 and sell it today you would earn a total of 30.00 from holding Ambac Financial Group or generate 2.65% 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. Ambac Financial Group
Performance |
| Timeline |
| CHINA TONTINE WINES |
| Ambac Financial Group |
CHINA TONTINE and Ambac Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and Ambac Financial
The main advantage of trading using opposite CHINA TONTINE and Ambac Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, Ambac Financial 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 Ambac Financial will offset losses from the drop in Ambac Financial's long position.| CHINA TONTINE vs. Diageo plc | CHINA TONTINE vs. Pernod Ricard SA | CHINA TONTINE vs. MGP Ingredients | CHINA TONTINE vs. Hawesko Holding AG |
| Ambac Financial vs. PLAYMATES TOYS | Ambac Financial vs. CHINA TONTINE WINES | Ambac Financial vs. SIMS METAL MGT | Ambac Financial vs. PENN NATL GAMING |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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