Correlation Between Cshg Logistica and LIFE CAPITAL
Can any of the company-specific risk be diversified away by investing in both Cshg Logistica and LIFE CAPITAL 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 LIFE CAPITAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cshg Logistica and LIFE CAPITAL PARTNERS, you can compare the effects of market volatilities on Cshg Logistica and LIFE CAPITAL 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 LIFE CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Logistica and LIFE CAPITAL.
Diversification Opportunities for Cshg Logistica and LIFE CAPITAL
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cshg and LIFE is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Logistica and LIFE CAPITAL PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFE CAPITAL PARTNERS 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 LIFE CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFE CAPITAL PARTNERS has no effect on the direction of Cshg Logistica i.e., Cshg Logistica and LIFE CAPITAL go up and down completely randomly.
Pair Corralation between Cshg Logistica and LIFE CAPITAL
Assuming the 90 days trading horizon Cshg Logistica is expected to generate 5.38 times less return on investment than LIFE CAPITAL. But when comparing it to its historical volatility, Cshg Logistica is 1.91 times less risky than LIFE CAPITAL. It trades about 0.0 of its potential returns per unit of risk. LIFE CAPITAL PARTNERS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 931.00 in LIFE CAPITAL PARTNERS on August 24, 2024 and sell it today you would earn a total of 13.00 from holding LIFE CAPITAL PARTNERS or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cshg Logistica vs. LIFE CAPITAL PARTNERS
Performance |
| Timeline |
| Cshg Logistica |
| LIFE CAPITAL PARTNERS |
Cshg Logistica and LIFE CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cshg Logistica and LIFE CAPITAL
The main advantage of trading using opposite Cshg Logistica and LIFE CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cshg Logistica position performs unexpectedly, LIFE CAPITAL 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 LIFE CAPITAL will offset losses from the drop in LIFE CAPITAL's long position.| Cshg Logistica vs. Cshg Jhsf Prime | Cshg Logistica vs. Cshg Atrium Shopping | Cshg Logistica vs. Real Estate Investment | Cshg Logistica vs. NAVI CRDITO IMOBILIRIO |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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