Correlation Between CHINA TONTINE and ITALIAN WINE
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and ITALIAN WINE 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 ITALIAN WINE 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 ITALIAN WINE BRANDS, you can compare the effects of market volatilities on CHINA TONTINE and ITALIAN WINE 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 ITALIAN WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and ITALIAN WINE.
Diversification Opportunities for CHINA TONTINE and ITALIAN WINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and ITALIAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and ITALIAN WINE BRANDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITALIAN WINE BRANDS 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 ITALIAN WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITALIAN WINE BRANDS has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and ITALIAN WINE go up and down completely randomly.
Pair Corralation between CHINA TONTINE and ITALIAN WINE
If you would invest 7.00 in CHINA TONTINE WINES on November 4, 2024 and sell it today you would earn a total of 0.00 from holding CHINA TONTINE WINES or generate 0.0% 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. ITALIAN WINE BRANDS
Performance |
| Timeline |
| CHINA TONTINE WINES |
| ITALIAN WINE BRANDS |
CHINA TONTINE and ITALIAN WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and ITALIAN WINE
The main advantage of trading using opposite CHINA TONTINE and ITALIAN WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, ITALIAN WINE 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 ITALIAN WINE will offset losses from the drop in ITALIAN WINE's long position.| CHINA TONTINE vs. MGP Ingredients | CHINA TONTINE vs. NAKED WINES PLC | CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. Origin Agritech |
| ITALIAN WINE vs. ELL ENVIRONHLDGS HD 0001 | ITALIAN WINE vs. MOUNT GIBSON IRON | ITALIAN WINE vs. Nippon Steel | ITALIAN WINE vs. Daido Steel Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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