Correlation Between NVIDIA and CK Asset
Can any of the company-specific risk be diversified away by investing in both NVIDIA and CK Asset 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 NVIDIA and CK Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NVIDIA and CK Asset Holdings, you can compare the effects of market volatilities on NVIDIA and CK Asset 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 NVIDIA with a short position of CK Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA and CK Asset.
Diversification Opportunities for NVIDIA and CK Asset
Excellent diversification
The 3 months correlation between NVIDIA and CHKGF is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and CK Asset Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Asset Holdings and NVIDIA 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 NVIDIA are associated (or correlated) with CK Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Asset Holdings has no effect on the direction of NVIDIA i.e., NVIDIA and CK Asset go up and down completely randomly.
Pair Corralation between NVIDIA and CK Asset
Given the investment horizon of 90 days NVIDIA is expected to generate 0.66 times more return on investment than CK Asset. However, NVIDIA is 1.52 times less risky than CK Asset. It trades about 0.15 of its potential returns per unit of risk. CK Asset Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,716 in NVIDIA on August 29, 2024 and sell it today you would earn a total of 11,976 from holding NVIDIA or generate 697.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.87% |
| Values | Daily Returns |
NVIDIA vs. CK Asset Holdings
Performance |
| Timeline |
| NVIDIA |
| CK Asset Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
NVIDIA and CK Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA and CK Asset
The main advantage of trading using opposite NVIDIA and CK Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA position performs unexpectedly, CK Asset 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 Asset will offset losses from the drop in CK Asset's long position.| NVIDIA vs. Intel | NVIDIA vs. Taiwan Semiconductor Manufacturing | NVIDIA vs. Marvell Technology Group | NVIDIA vs. Micron Technology |
| CK Asset vs. Hong Kong Land | CK Asset vs. Sino Land Co | CK Asset vs. CK Hutchison Holdings | CK Asset vs. CK Hutchison Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |