Correlation Between Chuangs China and AGF Management
Can any of the company-specific risk be diversified away by investing in both Chuangs China and AGF Management 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 AGF Management 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 AGF Management Limited, you can compare the effects of market volatilities on Chuangs China and AGF Management 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 AGF Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and AGF Management.
Diversification Opportunities for Chuangs China and AGF Management
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuangs and AGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and AGF Management Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGF Management 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 AGF Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGF Management has no effect on the direction of Chuangs China i.e., Chuangs China and AGF Management go up and down completely randomly.
Pair Corralation between Chuangs China and AGF Management
If you would invest 1.00 in Chuangs China Investments on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% 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. AGF Management Limited
Performance |
| Timeline |
| Chuangs China Investments |
| AGF Management |
Chuangs China and AGF Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and AGF Management
The main advantage of trading using opposite Chuangs China and AGF Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, AGF Management 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 AGF Management will offset losses from the drop in AGF Management's long position.| Chuangs China vs. Superior Plus Corp | Chuangs China vs. SIVERS SEMICONDUCTORS AB | Chuangs China vs. Reliance Steel Aluminum | Chuangs China vs. CHINA HUARONG ENERHD 50 |
| AGF Management vs. Food Life Companies | AGF Management vs. HK Electric Investments | AGF Management vs. JJ SNACK FOODS | AGF Management vs. Chuangs China Investments |
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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