Correlation Between Chuangs China and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both Chuangs China and ADRIATIC METALS 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 Chuangs China and ADRIATIC METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on Chuangs China and ADRIATIC METALS 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 Chuangs China with a short position of ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and ADRIATIC METALS.
Diversification Opportunities for Chuangs China and ADRIATIC METALS
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chuangs and ADRIATIC is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS and Chuangs China 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 Chuangs China Investments are associated (or correlated) with ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of Chuangs China i.e., Chuangs China and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between Chuangs China and ADRIATIC METALS
If you would invest 246.00 in ADRIATIC METALS LS 013355 on September 3, 2024 and sell it today you would earn a total of 0.00 from holding ADRIATIC METALS LS 013355 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| Chuangs China Investments |
| ADRIATIC METALS LS |
Chuangs China and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and ADRIATIC METALS
The main advantage of trading using opposite Chuangs China and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| Chuangs China vs. Treasury Wine Estates | Chuangs China vs. GigaMedia | Chuangs China vs. NAKED WINES PLC | Chuangs China vs. Tencent Music Entertainment |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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