Correlation Between Chuangs China and Automatic Data
Can any of the company-specific risk be diversified away by investing in both Chuangs China and Automatic Data 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 Automatic Data 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 Automatic Data Processing, you can compare the effects of market volatilities on Chuangs China and Automatic Data 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 Automatic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Automatic Data.
Diversification Opportunities for Chuangs China and Automatic Data
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chuangs and Automatic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and Automatic Data Processing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Data Processing 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 Automatic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Data Processing has no effect on the direction of Chuangs China i.e., Chuangs China and Automatic Data go up and down completely randomly.
Pair Corralation between Chuangs China and Automatic Data
If you would invest 26,695 in Automatic Data Processing on August 29, 2024 and sell it today you would earn a total of 2,340 from holding Automatic Data Processing or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chuangs China Investments vs. Automatic Data Processing
Performance |
| Timeline |
| Chuangs China Investments |
| Automatic Data Processing |
Chuangs China and Automatic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and Automatic Data
The main advantage of trading using opposite Chuangs China and Automatic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, Automatic Data 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 Automatic Data will offset losses from the drop in Automatic Data's long position.| Chuangs China vs. Playtech plc | Chuangs China vs. KOOL2PLAY SA ZY | Chuangs China vs. PLAYSTUDIOS A DL 0001 | Chuangs China vs. ANTA SPORTS PRODUCT |
| Automatic Data vs. Superior Plus Corp | Automatic Data vs. SIVERS SEMICONDUCTORS AB | Automatic Data vs. Talanx AG | Automatic Data vs. 2G ENERGY |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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