Correlation Between China Finance and Stingray
Can any of the company-specific risk be diversified away by investing in both China Finance and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on China Finance and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Finance and Stingray.
Diversification Opportunities for China Finance and Stingray
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Stingray is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Finance Online and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of China Finance i.e., China Finance and Stingray go up and down completely randomly.
Pair Corralation between China Finance and Stingray
If you would invest 518.00 in Stingray Group on August 26, 2024 and sell it today you would earn a total of 51.00 from holding Stingray Group or generate 9.85% 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. Stingray Group
Performance |
| Timeline |
| China Finance Online |
| Stingray Group |
China Finance and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Finance and Stingray
The main advantage of trading using opposite China Finance and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Finance position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.| China Finance vs. Morgan Stanley | China Finance vs. Goldman Sachs Group | China Finance vs. Charles Schwab Corp | China Finance vs. Interactive Brokers Group |
| Stingray vs. Ironveld Plc | Stingray vs. ArcelorMittal SA ADR | Stingray vs. PennantPark Floating Rate | Stingray vs. CECO Environmental Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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