Correlation Between Minerals Technologies and CK Hutchison
Can any of the company-specific risk be diversified away by investing in both Minerals Technologies and CK Hutchison 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 Minerals Technologies and CK Hutchison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minerals Technologies and CK Hutchison Holdings, you can compare the effects of market volatilities on Minerals Technologies and CK Hutchison 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 Minerals Technologies with a short position of CK Hutchison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minerals Technologies and CK Hutchison.
Diversification Opportunities for Minerals Technologies and CK Hutchison
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minerals and CKHUY is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Minerals Technologies and CK Hutchison Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Hutchison Holdings and Minerals Technologies 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 Minerals Technologies are associated (or correlated) with CK Hutchison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Hutchison Holdings has no effect on the direction of Minerals Technologies i.e., Minerals Technologies and CK Hutchison go up and down completely randomly.
Pair Corralation between Minerals Technologies and CK Hutchison
Considering the 90-day investment horizon Minerals Technologies is expected to under-perform the CK Hutchison. In addition to that, Minerals Technologies is 1.19 times more volatile than CK Hutchison Holdings. It trades about -0.01 of its total potential returns per unit of risk. CK Hutchison Holdings is currently generating about 0.04 per unit of volatility. If you would invest 479.00 in CK Hutchison Holdings on August 29, 2024 and sell it today you would earn a total of 30.00 from holding CK Hutchison Holdings or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minerals Technologies vs. CK Hutchison Holdings
Performance |
| Timeline |
| Minerals Technologies |
| CK Hutchison Holdings |
Minerals Technologies and CK Hutchison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minerals Technologies and CK Hutchison
The main advantage of trading using opposite Minerals Technologies and CK Hutchison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minerals Technologies position performs unexpectedly, CK Hutchison 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 Hutchison will offset losses from the drop in CK Hutchison's long position.| Minerals Technologies vs. Oil Dri | Minerals Technologies vs. H B Fuller | Minerals Technologies vs. Northern Technologies | Minerals Technologies vs. Cabot |
| CK Hutchison vs. Element Solutions | CK Hutchison vs. Orion Engineered Carbons | CK Hutchison vs. Minerals Technologies | CK Hutchison vs. Ingevity 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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