Correlation Between Aperture Health and China Finance
Can any of the company-specific risk be diversified away by investing in both Aperture Health and China Finance 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 Aperture Health and China Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aperture Health and China Finance, you can compare the effects of market volatilities on Aperture Health and China Finance 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 Aperture Health with a short position of China Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aperture Health and China Finance.
Diversification Opportunities for Aperture Health and China Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aperture and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aperture Health and China Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Finance and Aperture Health 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 Aperture Health are associated (or correlated) with China Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Finance has no effect on the direction of Aperture Health i.e., Aperture Health and China Finance go up and down completely randomly.
Pair Corralation between Aperture Health and China Finance
If you would invest 0.00 in China Finance on November 6, 2024 and sell it today you would earn a total of 0.00 from holding China Finance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Aperture Health vs. China Finance
Performance |
| Timeline |
| Aperture Health |
| China Finance |
Aperture Health and China Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aperture Health and China Finance
The main advantage of trading using opposite Aperture Health and China Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aperture Health position performs unexpectedly, China Finance 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 Finance will offset losses from the drop in China Finance's long position.| Aperture Health vs. Martin Marietta Materials | Aperture Health vs. CRH PLC ADR | Aperture Health vs. Eagle Materials | Aperture Health vs. Summit Materials |
| China Finance vs. Cardinal Health | China Finance vs. Allied Gaming Entertainment | China Finance vs. Ainsworth Game Technology | China Finance vs. Genuine Parts Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |