Correlation Between TSOGO SUN and CHINA CONBANK
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN and CHINA CONBANK 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 CONBANK 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 BANK ADR20, you can compare the effects of market volatilities on TSOGO SUN and CHINA CONBANK 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 CONBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and CHINA CONBANK.
Diversification Opportunities for TSOGO SUN and CHINA CONBANK
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TSOGO and CHINA is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING and CHINA BANK ADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA BANK ADR20 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 CONBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA BANK ADR20 has no effect on the direction of TSOGO SUN i.e., TSOGO SUN and CHINA CONBANK go up and down completely randomly.
Pair Corralation between TSOGO SUN and CHINA CONBANK
Assuming the 90 days horizon TSOGO SUN GAMING is expected to under-perform the CHINA CONBANK. In addition to that, TSOGO SUN is 1.93 times more volatile than CHINA BANK ADR20. It trades about -0.31 of its total potential returns per unit of risk. CHINA BANK ADR20 is currently generating about -0.03 per unit of volatility. If you would invest 1,390 in CHINA BANK ADR20 on September 3, 2024 and sell it today you would lose (10.00) from holding CHINA BANK ADR20 or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. CHINA BANK ADR20
Performance |
| Timeline |
| TSOGO SUN GAMING |
| CHINA BANK ADR20 |
TSOGO SUN and CHINA CONBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and CHINA CONBANK
The main advantage of trading using opposite TSOGO SUN and CHINA CONBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN position performs unexpectedly, CHINA CONBANK 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 CONBANK will offset losses from the drop in CHINA CONBANK's long position.| TSOGO SUN vs. Las Vegas Sands | TSOGO SUN vs. ENTAIN PLC UNSPADR1 | TSOGO SUN vs. GENTING SG LTD | TSOGO SUN vs. Boyd Gaming |
| CHINA CONBANK vs. KOOL2PLAY SA ZY | CHINA CONBANK vs. SYSTEMAIR AB | CHINA CONBANK vs. Playtech plc | CHINA CONBANK vs. Air New Zealand |
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.
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