Correlation Between Chuangs China and Appen
Can any of the company-specific risk be diversified away by investing in both Chuangs China and Appen 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 Appen 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 Appen Limited, you can compare the effects of market volatilities on Chuangs China and Appen 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 Appen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Appen.
Diversification Opportunities for Chuangs China and Appen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuangs and Appen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and Appen Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appen Limited 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 Appen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appen Limited has no effect on the direction of Chuangs China i.e., Chuangs China and Appen go up and down completely randomly.
Pair Corralation between Chuangs China and Appen
If you would invest 148.00 in Appen Limited on November 29, 2024 and sell it today you would earn a total of 23.00 from holding Appen Limited or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. Appen Limited
Performance |
| Timeline |
| Chuangs China Investments |
| Appen Limited |
Chuangs China and Appen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and Appen
The main advantage of trading using opposite Chuangs China and Appen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, Appen 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 Appen will offset losses from the drop in Appen's long position.| Chuangs China vs. Vulcan Materials | Chuangs China vs. COPLAND ROAD CAPITAL | Chuangs China vs. SAFEROADS HLDGS | Chuangs China vs. Hyster Yale Materials Handling |
| Appen vs. CALTAGIRONE EDITORE | Appen vs. ALEFARM BREWING DK 05 | Appen vs. Tianjin Capital Environmental | Appen vs. Titan Machinery |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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