Correlation Between Country Garden and Country Garden
Can any of the company-specific risk be diversified away by investing in both Country Garden and Country Garden 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 Country Garden 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 Country Garden Holdings, you can compare the effects of market volatilities on Country Garden and Country Garden 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 Country Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Country Garden and Country Garden.
Diversification Opportunities for Country Garden and Country Garden
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Country and Country is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Country Garden Holdings and Country Garden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Garden 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 Country Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Garden Holdings has no effect on the direction of Country Garden i.e., Country Garden and Country Garden go up and down completely randomly.
Pair Corralation between Country Garden and Country Garden
Assuming the 90 days horizon Country Garden is expected to generate 5.88 times less return on investment than Country Garden. But when comparing it to its historical volatility, Country Garden Holdings is 2.35 times less risky than Country Garden. It trades about 0.02 of its potential returns per unit of risk. Country Garden Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Country Garden Holdings on November 2, 2024 and sell it today you would lose (16.00) from holding Country Garden Holdings or give up 47.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.51% |
| Values | Daily Returns |
Country Garden Holdings vs. Country Garden Holdings
Performance |
| Timeline |
| Country Garden Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Country Garden Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Country Garden and Country Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Country Garden and Country Garden
The main advantage of trading using opposite Country Garden and Country Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Country Garden position performs unexpectedly, Country Garden 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 Country Garden will offset losses from the drop in Country Garden's long position.| Country Garden vs. Longfor Properties Co | Country Garden vs. China Overseas Land | Country Garden vs. China Resources Land | Country Garden vs. Anhui Conch Cement |
| Country Garden vs. Western Acquisition Ventures | Country Garden vs. Perella Weinberg Partners | Country Garden vs. Tradeweb Markets | Country Garden vs. Norfolk Southern |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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