Correlation Between Hong Kong and CK Asset
Can any of the company-specific risk be diversified away by investing in both Hong Kong and CK Asset 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 CK Asset 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 CK Asset Holdings, you can compare the effects of market volatilities on Hong Kong and CK Asset 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 CK Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and CK Asset.
Diversification Opportunities for Hong Kong and CK Asset
Excellent diversification
The 3 months correlation between Hong and CHKGF is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land and CK Asset Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Asset Holdings 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 CK Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Asset Holdings has no effect on the direction of Hong Kong i.e., Hong Kong and CK Asset go up and down completely randomly.
Pair Corralation between Hong Kong and CK Asset
If you would invest 1,985 in Hong Kong Land on August 28, 2024 and sell it today you would earn a total of 368.00 from holding Hong Kong Land or generate 18.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Hong Kong Land vs. CK Asset Holdings
Performance |
| Timeline |
| Hong Kong Land |
| CK Asset Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Hong Kong and CK Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and CK Asset
The main advantage of trading using opposite Hong Kong and CK Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong position performs unexpectedly, CK Asset 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 CK Asset will offset losses from the drop in CK Asset's long position.| Hong Kong vs. Wharf Holdings | Hong Kong vs. Holiday Island Holdings | Hong Kong vs. Sun Hung Kai | Hong Kong vs. Bayport International Holdings |
| CK Asset vs. Hong Kong Land | CK Asset vs. Sino Land Co | CK Asset vs. CK Hutchison Holdings | CK Asset vs. CK Hutchison 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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