Correlation Between Hong Kong and CNH Industrial
Can any of the company-specific risk be diversified away by investing in both Hong Kong and CNH Industrial 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 Hong Kong and CNH Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hong Kong Land and CNH Industrial NV, you can compare the effects of market volatilities on Hong Kong and CNH Industrial 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 Hong Kong with a short position of CNH Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and CNH Industrial.
Diversification Opportunities for Hong Kong and CNH Industrial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and CNH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and CNH Industrial NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNH Industrial NV and Hong Kong 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 Hong Kong Land are associated (or correlated) with CNH Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNH Industrial NV has no effect on the direction of Hong Kong i.e., Hong Kong and CNH Industrial go up and down completely randomly.
Pair Corralation between Hong Kong and CNH Industrial
If you would invest 1,055 in CNH Industrial NV on September 13, 2024 and sell it today you would earn a total of 90.00 from holding CNH Industrial NV or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hong Kong Land vs. CNH Industrial NV
Performance |
| Timeline |
| Hong Kong Land |
| CNH Industrial NV |
Hong Kong and CNH Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and CNH Industrial
The main advantage of trading using opposite Hong Kong and CNH Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, CNH Industrial 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 CNH Industrial will offset losses from the drop in CNH Industrial's long position.| Hong Kong vs. Jacquet Metal Service | Hong Kong vs. Wyndham Hotels Resorts | Hong Kong vs. InterContinental Hotels Group | Hong Kong vs. AMG Advanced Metallurgical |
| CNH Industrial vs. JB Hunt Transport | CNH Industrial vs. Batm Advanced Communications | CNH Industrial vs. Thor Mining PLC | CNH Industrial vs. Hochschild Mining plc |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |