Correlation Between Chuangs China and DaVita
Can any of the company-specific risk be diversified away by investing in both Chuangs China and DaVita 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 DaVita 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 DaVita Inc, you can compare the effects of market volatilities on Chuangs China and DaVita 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 DaVita. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and DaVita.
Diversification Opportunities for Chuangs China and DaVita
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chuangs and DaVita is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and DaVita Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DaVita Inc 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 DaVita. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DaVita Inc has no effect on the direction of Chuangs China i.e., Chuangs China and DaVita go up and down completely randomly.
Pair Corralation between Chuangs China and DaVita
If you would invest 12,870 in DaVita Inc on September 5, 2024 and sell it today you would earn a total of 2,655 from holding DaVita Inc or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chuangs China Investments vs. DaVita Inc
Performance |
| Timeline |
| Chuangs China Investments |
| DaVita Inc |
Chuangs China and DaVita Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and DaVita
The main advantage of trading using opposite Chuangs China and DaVita positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, DaVita 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 DaVita will offset losses from the drop in DaVita's long position.| Chuangs China vs. Hongkong Land Holdings | Chuangs China vs. Superior Plus Corp | Chuangs China vs. NMI Holdings | Chuangs China vs. Origin Agritech |
| DaVita vs. SEALED AIR | DaVita vs. Gamma Communications plc | DaVita vs. INTERSHOP Communications Aktiengesellschaft | DaVita vs. LAir Liquide SA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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