Correlation Between Cornish Metals and Hong Kong
Can any of the company-specific risk be diversified away by investing in both Cornish Metals and Hong Kong 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 Cornish Metals and Hong Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cornish Metals and Hong Kong Land, you can compare the effects of market volatilities on Cornish Metals and Hong Kong 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 Cornish Metals with a short position of Hong Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornish Metals and Hong Kong.
Diversification Opportunities for Cornish Metals and Hong Kong
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cornish and Hong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cornish Metals and Hong Kong Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Kong Land and Cornish Metals 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 Cornish Metals are associated (or correlated) with Hong Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Kong Land has no effect on the direction of Cornish Metals i.e., Cornish Metals and Hong Kong go up and down completely randomly.
Pair Corralation between Cornish Metals and Hong Kong
If you would invest 760.00 in Cornish Metals on September 13, 2024 and sell it today you would earn a total of 75.00 from holding Cornish Metals or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cornish Metals vs. Hong Kong Land
Performance |
| Timeline |
| Cornish Metals |
| Hong Kong Land |
Cornish Metals and Hong Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cornish Metals and Hong Kong
The main advantage of trading using opposite Cornish Metals and Hong Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornish Metals position performs unexpectedly, Hong Kong 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 Hong Kong will offset losses from the drop in Hong Kong's long position.| Cornish Metals vs. Prudential Financial | Cornish Metals vs. Cincinnati Financial Corp | Cornish Metals vs. Bank of Ireland | Cornish Metals vs. Ameriprise Financial |
| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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