Correlation Between Henderson Land and COUNTRY GARDEN
Can any of the company-specific risk be diversified away by investing in both Henderson Land and COUNTRY GARDEN 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 Henderson Land and COUNTRY GARDEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson Land Development and COUNTRY GARDEN SVDL 0001, you can compare the effects of market volatilities on Henderson Land and COUNTRY GARDEN 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 Henderson Land with a short position of COUNTRY GARDEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson Land and COUNTRY GARDEN.
Diversification Opportunities for Henderson Land and COUNTRY GARDEN
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henderson and COUNTRY is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Henderson Land Development and COUNTRY GARDEN SVDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COUNTRY GARDEN SVDL and Henderson Land 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 Henderson Land Development are associated (or correlated) with COUNTRY GARDEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COUNTRY GARDEN SVDL has no effect on the direction of Henderson Land i.e., Henderson Land and COUNTRY GARDEN go up and down completely randomly.
Pair Corralation between Henderson Land and COUNTRY GARDEN
Assuming the 90 days horizon Henderson Land Development is expected to generate 0.47 times more return on investment than COUNTRY GARDEN. However, Henderson Land Development is 2.14 times less risky than COUNTRY GARDEN. It trades about -0.02 of its potential returns per unit of risk. COUNTRY GARDEN SVDL 0001 is currently generating about -0.04 per unit of risk. If you would invest 296.00 in Henderson Land Development on September 2, 2024 and sell it today you would lose (2.00) from holding Henderson Land Development or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henderson Land Development vs. COUNTRY GARDEN SVDL 0001
Performance |
| Timeline |
| Henderson Land Devel |
| COUNTRY GARDEN SVDL |
Henderson Land and COUNTRY GARDEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson Land and COUNTRY GARDEN
The main advantage of trading using opposite Henderson Land and COUNTRY GARDEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson Land position performs unexpectedly, COUNTRY GARDEN 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 COUNTRY GARDEN will offset losses from the drop in COUNTRY GARDEN's long position.| Henderson Land vs. CBRE Group Class | Henderson Land vs. Superior Plus Corp | Henderson Land vs. NMI Holdings | Henderson Land vs. Origin Agritech |
| COUNTRY GARDEN vs. Chunghwa Telecom Co | COUNTRY GARDEN vs. Grupo Carso SAB | COUNTRY GARDEN vs. CITY OFFICE REIT | COUNTRY GARDEN vs. Consolidated Communications Holdings |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |