Correlation Between Chuangs China and CDL INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Chuangs China and CDL INVESTMENT 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 CDL INVESTMENT 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 CDL INVESTMENT, you can compare the effects of market volatilities on Chuangs China and CDL INVESTMENT 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 CDL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and CDL INVESTMENT.
Diversification Opportunities for Chuangs China and CDL INVESTMENT
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chuangs and CDL is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and CDL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDL INVESTMENT 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 CDL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDL INVESTMENT has no effect on the direction of Chuangs China i.e., Chuangs China and CDL INVESTMENT go up and down completely randomly.
Pair Corralation between Chuangs China and CDL INVESTMENT
If you would invest 42.00 in CDL INVESTMENT on August 28, 2024 and sell it today you would earn a total of 1.00 from holding CDL INVESTMENT or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. CDL INVESTMENT
Performance |
| Timeline |
| Chuangs China Investments |
| CDL INVESTMENT |
Chuangs China and CDL INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and CDL INVESTMENT
The main advantage of trading using opposite Chuangs China and CDL INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, CDL INVESTMENT 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 CDL INVESTMENT will offset losses from the drop in CDL INVESTMENT's long position.| Chuangs China vs. Superior Plus Corp | Chuangs China vs. NMI Holdings | Chuangs China vs. Origin Agritech | Chuangs China vs. SIVERS SEMICONDUCTORS AB |
| CDL INVESTMENT vs. Sabra Health Care | CDL INVESTMENT vs. Zijin Mining Group | CDL INVESTMENT vs. CVS Health | CDL INVESTMENT vs. EPSILON HEALTHCARE LTD |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |