Correlation Between Q2M Managementberatu and China Resources
Can any of the company-specific risk be diversified away by investing in both Q2M Managementberatu and China Resources 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 Q2M Managementberatu and China Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q2M Managementberatung AG and China Resources Beer, you can compare the effects of market volatilities on Q2M Managementberatu and China Resources 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 Q2M Managementberatu with a short position of China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q2M Managementberatu and China Resources.
Diversification Opportunities for Q2M Managementberatu and China Resources
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Q2M and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Q2M Managementberatung AG and China Resources Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Beer and Q2M Managementberatu 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 Q2M Managementberatung AG are associated (or correlated) with China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Beer has no effect on the direction of Q2M Managementberatu i.e., Q2M Managementberatu and China Resources go up and down completely randomly.
Pair Corralation between Q2M Managementberatu and China Resources
Assuming the 90 days trading horizon Q2M Managementberatung AG is expected to under-perform the China Resources. But the stock apears to be less risky and, when comparing its historical volatility, Q2M Managementberatung AG is 7.25 times less risky than China Resources. The stock trades about -0.04 of its potential returns per unit of risk. The China Resources Beer is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 271.00 in China Resources Beer on October 17, 2024 and sell it today you would earn a total of 13.00 from holding China Resources Beer or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Q2M Managementberatung AG vs. China Resources Beer
Performance |
| Timeline |
| Q2M Managementberatung |
| China Resources Beer |
Q2M Managementberatu and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Q2M Managementberatu and China Resources
The main advantage of trading using opposite Q2M Managementberatu and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q2M Managementberatu position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Q2M Managementberatu vs. SIDETRADE EO 1 | Q2M Managementberatu vs. Nok Airlines PCL | Q2M Managementberatu vs. Aegean Airlines SA | Q2M Managementberatu vs. CarsalesCom |
| China Resources vs. Automatic Data Processing | China Resources vs. Molina Healthcare | China Resources vs. US Physical Therapy | China Resources vs. SILVER BULLET DATA |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |