Correlation Between TSOGO SUN and China Pacific
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and China Pacific 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 China Pacific 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 China Pacific Insurance, you can compare the effects of market volatilities on TSOGO SUN and China Pacific 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 China Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and China Pacific.
Diversification Opportunities for TSOGO SUN and China Pacific
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between TSOGO and China is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and China Pacific Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Pacific Insurance 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 China Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Pacific Insurance has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and China Pacific go up and down completely randomly.
Pair Corralation between TSOGO SUN and China Pacific
Assuming the 90 days horizon TSOGO SUN is expected to generate 1.65 times less return on investment than China Pacific. But when comparing it to its historical volatility, TSOGO SUN GAMING is 1.06 times less risky than China Pacific. It trades about 0.06 of its potential returns per unit of risk. China Pacific Insurance is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 108.00 in China Pacific Insurance on September 14, 2024 and sell it today you would earn a total of 196.00 from holding China Pacific Insurance or generate 181.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. China Pacific Insurance
Performance |
| Timeline |
| TSOGO SUN GAMING |
| China Pacific Insurance |
TSOGO SUN and China Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and China Pacific
The main advantage of trading using opposite TSOGO SUN and China Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, China Pacific 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 Pacific will offset losses from the drop in China Pacific's long position.| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB | TSOGO SUN vs. Norsk Hydro ASA | TSOGO SUN vs. Reliance Steel Aluminum |
| China Pacific vs. TSOGO SUN GAMING | China Pacific vs. SOFI TECHNOLOGIES | China Pacific vs. THORNEY TECHS LTD | China Pacific vs. Media and Games |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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