Correlation Between Kirin Holdings and CNVISION MEDIA
Can any of the company-specific risk be diversified away by investing in both Kirin Holdings and CNVISION MEDIA 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 Kirin Holdings and CNVISION MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirin Holdings and CNVISION MEDIA, you can compare the effects of market volatilities on Kirin Holdings and CNVISION MEDIA 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 Kirin Holdings with a short position of CNVISION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirin Holdings and CNVISION MEDIA.
Diversification Opportunities for Kirin Holdings and CNVISION MEDIA
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kirin and CNVISION is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kirin Holdings and CNVISION MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNVISION MEDIA and Kirin Holdings 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 Kirin Holdings are associated (or correlated) with CNVISION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNVISION MEDIA has no effect on the direction of Kirin Holdings i.e., Kirin Holdings and CNVISION MEDIA go up and down completely randomly.
Pair Corralation between Kirin Holdings and CNVISION MEDIA
Assuming the 90 days horizon Kirin Holdings is expected to under-perform the CNVISION MEDIA. But the stock apears to be less risky and, when comparing its historical volatility, Kirin Holdings is 2.34 times less risky than CNVISION MEDIA. The stock trades about -0.02 of its potential returns per unit of risk. The CNVISION MEDIA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.55 in CNVISION MEDIA on September 13, 2024 and sell it today you would earn a total of 0.10 from holding CNVISION MEDIA or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirin Holdings vs. CNVISION MEDIA
Performance |
| Timeline |
| Kirin Holdings |
| CNVISION MEDIA |
Kirin Holdings and CNVISION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirin Holdings and CNVISION MEDIA
The main advantage of trading using opposite Kirin Holdings and CNVISION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirin Holdings position performs unexpectedly, CNVISION MEDIA 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 CNVISION MEDIA will offset losses from the drop in CNVISION MEDIA's long position.| Kirin Holdings vs. THORNEY TECHS LTD | Kirin Holdings vs. SOFI TECHNOLOGIES | Kirin Holdings vs. Digilife Technologies Limited | Kirin Holdings vs. Ebro Foods SA |
| CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc | CNVISION MEDIA vs. Apple Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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