Correlation Between CHINA TONTINE and ETFS Coffee
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and ETFS Coffee 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 ETFS Coffee 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 ETFS Coffee ETC, you can compare the effects of market volatilities on CHINA TONTINE and ETFS Coffee 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 ETFS Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and ETFS Coffee.
Diversification Opportunities for CHINA TONTINE and ETFS Coffee
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and ETFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and ETFS Coffee ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS Coffee ETC 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 ETFS Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS Coffee ETC has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and ETFS Coffee go up and down completely randomly.
Pair Corralation between CHINA TONTINE and ETFS Coffee
If you would invest 2,752 in ETFS Coffee ETC on August 25, 2024 and sell it today you would earn a total of 1,749 from holding ETFS Coffee ETC or generate 63.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.28% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. ETFS Coffee ETC
Performance |
| Timeline |
| CHINA TONTINE WINES |
| ETFS Coffee ETC |
CHINA TONTINE and ETFS Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and ETFS Coffee
The main advantage of trading using opposite CHINA TONTINE and ETFS Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, ETFS Coffee 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 ETFS Coffee will offset losses from the drop in ETFS Coffee's long position.| CHINA TONTINE vs. Diageo plc | CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. NMI Holdings | CHINA TONTINE vs. Origin Agritech |
| ETFS Coffee vs. SCANSOURCE | ETFS Coffee vs. CHINA TONTINE WINES | ETFS Coffee vs. EIDESVIK OFFSHORE NK | ETFS Coffee vs. SOLSTAD OFFSHORE NK |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |