Correlation Between Expat Czech and Alibaba Health
Can any of the company-specific risk be diversified away by investing in both Expat Czech and Alibaba Health 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 Expat Czech and Alibaba Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expat Czech PX and Alibaba Health Information, you can compare the effects of market volatilities on Expat Czech and Alibaba Health 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 Expat Czech with a short position of Alibaba Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expat Czech and Alibaba Health.
Diversification Opportunities for Expat Czech and Alibaba Health
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expat and Alibaba is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Expat Czech PX and Alibaba Health Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Health Infor and Expat Czech 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 Expat Czech PX are associated (or correlated) with Alibaba Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Health Infor has no effect on the direction of Expat Czech i.e., Expat Czech and Alibaba Health go up and down completely randomly.
Pair Corralation between Expat Czech and Alibaba Health
Assuming the 90 days trading horizon Expat Czech PX is expected to generate 0.27 times more return on investment than Alibaba Health. However, Expat Czech PX is 3.71 times less risky than Alibaba Health. It trades about 0.31 of its potential returns per unit of risk. Alibaba Health Information is currently generating about -0.32 per unit of risk. If you would invest 146.00 in Expat Czech PX on October 10, 2024 and sell it today you would earn a total of 6.00 from holding Expat Czech PX or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expat Czech PX vs. Alibaba Health Information
Performance |
| Timeline |
| Expat Czech PX |
| Alibaba Health Infor |
Expat Czech and Alibaba Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expat Czech and Alibaba Health
The main advantage of trading using opposite Expat Czech and Alibaba Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expat Czech position performs unexpectedly, Alibaba Health 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 Alibaba Health will offset losses from the drop in Alibaba Health's long position.| Expat Czech vs. Expat Croatia Crobex | Expat Czech vs. Expat Serbia Belex15 | Expat Czech vs. Expat Poland WIG20 | Expat Czech vs. Expat Slovenia SBI |
| Alibaba Health vs. Superior Plus Corp | Alibaba Health vs. NMI Holdings | Alibaba Health vs. SIVERS SEMICONDUCTORS AB | Alibaba Health vs. Talanx AG |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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