Correlation Between CTPartners Executive and Diguang Intl
Can any of the company-specific risk be diversified away by investing in both CTPartners Executive and Diguang Intl 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 CTPartners Executive and Diguang Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTPartners Executive Search and Diguang Intl Dev, you can compare the effects of market volatilities on CTPartners Executive and Diguang Intl 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 CTPartners Executive with a short position of Diguang Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTPartners Executive and Diguang Intl.
Diversification Opportunities for CTPartners Executive and Diguang Intl
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CTPartners and Diguang is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding CTPartners Executive Search and Diguang Intl Dev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diguang Intl Dev and CTPartners Executive 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 CTPartners Executive Search are associated (or correlated) with Diguang Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diguang Intl Dev has no effect on the direction of CTPartners Executive i.e., CTPartners Executive and Diguang Intl go up and down completely randomly.
Pair Corralation between CTPartners Executive and Diguang Intl
If you would invest 0.95 in Diguang Intl Dev on September 4, 2024 and sell it today you would lose (0.86) from holding Diguang Intl Dev or give up 90.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
CTPartners Executive Search vs. Diguang Intl Dev
Performance |
| Timeline |
| CTPartners Executive |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Diguang Intl Dev |
CTPartners Executive and Diguang Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTPartners Executive and Diguang Intl
The main advantage of trading using opposite CTPartners Executive and Diguang Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTPartners Executive position performs unexpectedly, Diguang Intl 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 Diguang Intl will offset losses from the drop in Diguang Intl's long position.| CTPartners Executive vs. Kelly Services A | CTPartners Executive vs. Korn Ferry | CTPartners Executive vs. Heidrick Struggles International | CTPartners Executive vs. Hudson Global |
| Diguang Intl vs. Griffon | Diguang Intl vs. Jeld Wen Holding | Diguang Intl vs. Canlan Ice Sports | Diguang Intl vs. Harmony Gold Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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