Correlation Between TSOGO SUN and CK HUTCHISON
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and CK HUTCHISON 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 TSOGO SUN and CK HUTCHISON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and CK HUTCHISON HLDGS, you can compare the effects of market volatilities on TSOGO SUN and CK HUTCHISON 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 TSOGO SUN with a short position of CK HUTCHISON. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and CK HUTCHISON.
Diversification Opportunities for TSOGO SUN and CK HUTCHISON
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TSOGO and 2CKA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and CK HUTCHISON HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK HUTCHISON HLDGS and TSOGO SUN 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 TSOGO SUN GAMING are associated (or correlated) with CK HUTCHISON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK HUTCHISON HLDGS has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and CK HUTCHISON go up and down completely randomly.
Pair Corralation between TSOGO SUN and CK HUTCHISON
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 1.91 times more return on investment than CK HUTCHISON. However, TSOGO SUN is 1.91 times more volatile than CK HUTCHISON HLDGS. It trades about 0.04 of its potential returns per unit of risk. CK HUTCHISON HLDGS is currently generating about 0.02 per unit of risk. If you would invest 32.00 in TSOGO SUN GAMING on September 12, 2024 and sell it today you would earn a total of 23.00 from holding TSOGO SUN GAMING or generate 71.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. CK HUTCHISON HLDGS
Performance |
| Timeline |
| TSOGO SUN GAMING |
| CK HUTCHISON HLDGS |
TSOGO SUN and CK HUTCHISON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and CK HUTCHISON
The main advantage of trading using opposite TSOGO SUN and CK HUTCHISON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, CK HUTCHISON 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 HUTCHISON will offset losses from the drop in CK HUTCHISON's long position.| TSOGO SUN vs. Sands China | TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB | TSOGO SUN vs. Norsk Hydro ASA |
| CK HUTCHISON vs. TSOGO SUN GAMING | CK HUTCHISON vs. Media and Games | CK HUTCHISON vs. GAMESTOP | CK HUTCHISON vs. Boyd Gaming |
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 Positions Ratings module to 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.
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