Correlation Between Cshg Logistica and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Cshg Logistica and Alibaba Group 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 Cshg Logistica and Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cshg Logistica and Alibaba Group Holding, you can compare the effects of market volatilities on Cshg Logistica and Alibaba Group 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 Cshg Logistica with a short position of Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Logistica and Alibaba Group.
Diversification Opportunities for Cshg Logistica and Alibaba Group
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cshg and Alibaba is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Logistica and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding and Cshg Logistica 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 Cshg Logistica are associated (or correlated) with Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Cshg Logistica i.e., Cshg Logistica and Alibaba Group go up and down completely randomly.
Pair Corralation between Cshg Logistica and Alibaba Group
Assuming the 90 days trading horizon Cshg Logistica is expected to generate 0.2 times more return on investment than Alibaba Group. However, Cshg Logistica is 5.12 times less risky than Alibaba Group. It trades about -0.03 of its potential returns per unit of risk. Alibaba Group Holding is currently generating about -0.18 per unit of risk. If you would invest 15,424 in Cshg Logistica on August 30, 2024 and sell it today you would lose (54.00) from holding Cshg Logistica or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cshg Logistica vs. Alibaba Group Holding
Performance |
| Timeline |
| Cshg Logistica |
| Alibaba Group Holding |
Cshg Logistica and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cshg Logistica and Alibaba Group
The main advantage of trading using opposite Cshg Logistica and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cshg Logistica position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| Cshg Logistica vs. Energisa SA | Cshg Logistica vs. BTG Pactual Logstica | Cshg Logistica vs. Plano Plano Desenvolvimento | Cshg Logistica vs. The Procter Gamble |
| Alibaba Group vs. Pinduoduo | Alibaba Group vs. JD Inc | Alibaba Group vs. Sea Limited | Alibaba Group vs. eBay Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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