Correlation Between China Finance and 1911 Gold
Can any of the company-specific risk be diversified away by investing in both China Finance and 1911 Gold 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 China Finance and 1911 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Finance Online and 1911 Gold Corp, you can compare the effects of market volatilities on China Finance and 1911 Gold 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 China Finance with a short position of 1911 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Finance and 1911 Gold.
Diversification Opportunities for China Finance and 1911 Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and 1911 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Finance Online and 1911 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1911 Gold Corp and China Finance 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 China Finance Online are associated (or correlated) with 1911 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1911 Gold Corp has no effect on the direction of China Finance i.e., China Finance and 1911 Gold go up and down completely randomly.
Pair Corralation between China Finance and 1911 Gold
Assuming the 90 days horizon China Finance Online is expected to generate 6.75 times more return on investment than 1911 Gold. However, China Finance is 6.75 times more volatile than 1911 Gold Corp. It trades about 0.05 of its potential returns per unit of risk. 1911 Gold Corp is currently generating about 0.06 per unit of risk. If you would invest 0.01 in China Finance Online on August 31, 2024 and sell it today you would earn a total of 0.00 from holding China Finance Online or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Finance Online vs. 1911 Gold Corp
Performance |
| Timeline |
| China Finance Online |
| 1911 Gold Corp |
China Finance and 1911 Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Finance and 1911 Gold
The main advantage of trading using opposite China Finance and 1911 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Finance position performs unexpectedly, 1911 Gold 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 1911 Gold will offset losses from the drop in 1911 Gold's long position.| China Finance vs. Dmg Blockchain Solutions | China Finance vs. Cathedra Bitcoin | China Finance vs. Galaxy Digital Holdings | China Finance vs. Neptune Digital Assets |
| 1911 Gold vs. Antioquia Gold | 1911 Gold vs. Asante Gold | 1911 Gold vs. Antilles Gold Limited | 1911 Gold vs. Allegiant Gold |
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
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |