Correlation Between City Retail and HK Metals
Can any of the company-specific risk be diversified away by investing in both City Retail and HK Metals 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 City Retail and HK Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City Retail Developments and HK Metals Utama, you can compare the effects of market volatilities on City Retail and HK Metals 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 City Retail with a short position of HK Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Retail and HK Metals.
Diversification Opportunities for City Retail and HK Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between City and HKMU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding City Retail Developments and HK Metals Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Metals Utama and City Retail 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 City Retail Developments are associated (or correlated) with HK Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Metals Utama has no effect on the direction of City Retail i.e., City Retail and HK Metals go up and down completely randomly.
Pair Corralation between City Retail and HK Metals
If you would invest 13,500 in City Retail Developments on August 30, 2024 and sell it today you would earn a total of 0.00 from holding City Retail Developments 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 |
City Retail Developments vs. HK Metals Utama
Performance |
| Timeline |
| City Retail Developments |
| HK Metals Utama |
City Retail and HK Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Retail and HK Metals
The main advantage of trading using opposite City Retail and HK Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Retail position performs unexpectedly, HK Metals 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 HK Metals will offset losses from the drop in HK Metals' long position.| City Retail vs. Metropolitan Land Tbk | City Retail vs. Bekasi Fajar Industrial | City Retail vs. Greenwood Sejahtera Tbk | City Retail vs. Metropolitan Kentjana Tbk |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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