Correlation Between Quality Houses and Country Group
Can any of the company-specific risk be diversified away by investing in both Quality Houses and Country Group 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 Quality Houses and Country Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quality Houses Property and Country Group Holdings, you can compare the effects of market volatilities on Quality Houses and Country Group 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 Quality Houses with a short position of Country Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quality Houses and Country Group.
Diversification Opportunities for Quality Houses and Country Group
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Quality and Country is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Quality Houses Property and Country Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Group Holdings and Quality Houses 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 Quality Houses Property are associated (or correlated) with Country Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Group Holdings has no effect on the direction of Quality Houses i.e., Quality Houses and Country Group go up and down completely randomly.
Pair Corralation between Quality Houses and Country Group
Assuming the 90 days trading horizon Quality Houses Property is expected to under-perform the Country Group. But the fund apears to be less risky and, when comparing its historical volatility, Quality Houses Property is 24.29 times less risky than Country Group. The fund trades about -0.04 of its potential returns per unit of risk. The Country Group Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Country Group Holdings on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Country Group Holdings or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Quality Houses Property vs. Country Group Holdings
Performance |
| Timeline |
| Quality Houses Property |
| Country Group Holdings |
Quality Houses and Country Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quality Houses and Country Group
The main advantage of trading using opposite Quality Houses and Country Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quality Houses position performs unexpectedly, Country Group 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 Country Group will offset losses from the drop in Country Group's long position.| Quality Houses vs. Quality Houses Hotel | Quality Houses vs. LH Shopping Centers | Quality Houses vs. LH Hotel Leasehold | Quality Houses vs. Future Park Leasehold |
| Country Group vs. Asia Plus Group | Country Group vs. Globlex Holding Management | Country Group vs. Asia Green Energy | Country Group vs. Amanah Leasing Public |
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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