Correlation Between SENERELECSPGDR REGS and CK Infrastructure
Can any of the company-specific risk be diversified away by investing in both SENERELECSPGDR REGS and CK Infrastructure 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 SENERELECSPGDR REGS and CK Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SENERELECSPGDR REGS 1 and CK Infrastructure Holdings, you can compare the effects of market volatilities on SENERELECSPGDR REGS and CK Infrastructure 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 SENERELECSPGDR REGS with a short position of CK Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of SENERELECSPGDR REGS and CK Infrastructure.
Diversification Opportunities for SENERELECSPGDR REGS and CK Infrastructure
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SENERELECSPGDR and CHH is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SENERELECSPGDR REGS 1 and CK Infrastructure Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Infrastructure and SENERELECSPGDR REGS 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 SENERELECSPGDR REGS 1 are associated (or correlated) with CK Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Infrastructure has no effect on the direction of SENERELECSPGDR REGS i.e., SENERELECSPGDR REGS and CK Infrastructure go up and down completely randomly.
Pair Corralation between SENERELECSPGDR REGS and CK Infrastructure
Assuming the 90 days trading horizon SENERELECSPGDR REGS is expected to generate 1.18 times less return on investment than CK Infrastructure. In addition to that, SENERELECSPGDR REGS is 1.14 times more volatile than CK Infrastructure Holdings. It trades about 0.02 of its total potential returns per unit of risk. CK Infrastructure Holdings is currently generating about 0.02 per unit of volatility. If you would invest 620.00 in CK Infrastructure Holdings on September 12, 2024 and sell it today you would earn a total of 8.00 from holding CK Infrastructure Holdings or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SENERELECSPGDR REGS 1 vs. CK Infrastructure Holdings
Performance |
| Timeline |
| SENERELECSPGDR REGS |
| CK Infrastructure |
SENERELECSPGDR REGS and CK Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SENERELECSPGDR REGS and CK Infrastructure
The main advantage of trading using opposite SENERELECSPGDR REGS and CK Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SENERELECSPGDR REGS position performs unexpectedly, CK Infrastructure 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 CK Infrastructure will offset losses from the drop in CK Infrastructure's long position.| SENERELECSPGDR REGS vs. MITSUBISHI STEEL MFG | SENERELECSPGDR REGS vs. Benchmark Electronics | SENERELECSPGDR REGS vs. GFL ENVIRONM | SENERELECSPGDR REGS vs. Schweizer Electronic AG |
| CK Infrastructure vs. INDO RAMA SYNTHETIC | CK Infrastructure vs. STMICROELECTRONICS | CK Infrastructure vs. Eastman Chemical | CK Infrastructure vs. Arrow Electronics |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |