Correlation Between CRAWFORD A and China Taiping
Can any of the company-specific risk be diversified away by investing in both CRAWFORD A and China Taiping 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 CRAWFORD A and China Taiping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRAWFORD A NV and China Taiping Insurance, you can compare the effects of market volatilities on CRAWFORD A and China Taiping 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 CRAWFORD A with a short position of China Taiping. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRAWFORD A and China Taiping.
Diversification Opportunities for CRAWFORD A and China Taiping
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CRAWFORD and China is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CRAWFORD A NV and China Taiping Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Taiping Insurance and CRAWFORD A 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 CRAWFORD A NV are associated (or correlated) with China Taiping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Taiping Insurance has no effect on the direction of CRAWFORD A i.e., CRAWFORD A and China Taiping go up and down completely randomly.
Pair Corralation between CRAWFORD A and China Taiping
Assuming the 90 days trading horizon CRAWFORD A NV is expected to generate 1.2 times more return on investment than China Taiping. However, CRAWFORD A is 1.2 times more volatile than China Taiping Insurance. It trades about 0.03 of its potential returns per unit of risk. China Taiping Insurance is currently generating about -0.09 per unit of risk. If you would invest 1,110 in CRAWFORD A NV on October 25, 2024 and sell it today you would earn a total of 10.00 from holding CRAWFORD A NV or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
CRAWFORD A NV vs. China Taiping Insurance
Performance |
| Timeline |
| CRAWFORD A NV |
| China Taiping Insurance |
CRAWFORD A and China Taiping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CRAWFORD A and China Taiping
The main advantage of trading using opposite CRAWFORD A and China Taiping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRAWFORD A position performs unexpectedly, China Taiping 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 China Taiping will offset losses from the drop in China Taiping's long position.| CRAWFORD A vs. Marie Brizard Wine | CRAWFORD A vs. BII Railway Transportation | CRAWFORD A vs. Treasury Wine Estates | CRAWFORD A vs. GEAR4MUSIC LS 10 |
| China Taiping vs. TEXAS ROADHOUSE | China Taiping vs. Goosehead Insurance | China Taiping vs. G III Apparel Group | China Taiping vs. Transport International Holdings |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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