Correlation Between Country Garden and Holiday Island
Can any of the company-specific risk be diversified away by investing in both Country Garden and Holiday Island 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 Country Garden and Holiday Island into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Country Garden Holdings and Holiday Island Holdings, you can compare the effects of market volatilities on Country Garden and Holiday Island 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 Country Garden with a short position of Holiday Island. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Garden and Holiday Island.
Diversification Opportunities for Country Garden and Holiday Island
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Country and Holiday is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Country Garden Holdings and Holiday Island Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holiday Island Holdings and Country Garden 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 Country Garden Holdings are associated (or correlated) with Holiday Island. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holiday Island Holdings has no effect on the direction of Country Garden i.e., Country Garden and Holiday Island go up and down completely randomly.
Pair Corralation between Country Garden and Holiday Island
If you would invest (100.00) in Country Garden Holdings on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Country Garden Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Country Garden Holdings vs. Holiday Island Holdings
Performance |
| Timeline |
| Country Garden Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Holiday Island Holdings |
Country Garden and Holiday Island Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Country Garden and Holiday Island
The main advantage of trading using opposite Country Garden and Holiday Island positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Country Garden position performs unexpectedly, Holiday Island 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 Holiday Island will offset losses from the drop in Holiday Island's long position.| Country Garden vs. City Office REIT | Country Garden vs. LENSAR Inc | Country Garden vs. Federal Home Loan | Country Garden vs. National Vision Holdings |
| Holiday Island vs. Hong Kong Land | Holiday Island vs. Wharf Holdings | Holiday Island vs. Sun Hung Kai | Holiday Island vs. Bayport International Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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