Correlation Between Stock Exchange and Christiani Nielsen
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Christiani Nielsen 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 Stock Exchange and Christiani Nielsen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Christiani Nielsen Public, you can compare the effects of market volatilities on Stock Exchange and Christiani Nielsen 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 Stock Exchange with a short position of Christiani Nielsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Christiani Nielsen.
Diversification Opportunities for Stock Exchange and Christiani Nielsen
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stock and Christiani is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Christiani Nielsen Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Christiani Nielsen Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Christiani Nielsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Christiani Nielsen Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Christiani Nielsen go up and down completely randomly.
Pair Corralation between Stock Exchange and Christiani Nielsen
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.37 times more return on investment than Christiani Nielsen. However, Stock Exchange Of is 2.7 times less risky than Christiani Nielsen. It trades about -0.07 of its potential returns per unit of risk. Christiani Nielsen Public is currently generating about -0.25 per unit of risk. If you would invest 145,303 in Stock Exchange Of on August 28, 2024 and sell it today you would lose (1,478) from holding Stock Exchange Of or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Christiani Nielsen Public
Performance |
| Timeline |
Stock Exchange and Christiani Nielsen Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Christiani Nielsen Public
Pair trading matchups for Christiani Nielsen
Pair Trading with Stock Exchange and Christiani Nielsen
The main advantage of trading using opposite Stock Exchange and Christiani Nielsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Christiani Nielsen 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 Christiani Nielsen will offset losses from the drop in Christiani Nielsen's long position.| Stock Exchange vs. Turnkey Communication Services | Stock Exchange vs. Winnergy Medical Public | Stock Exchange vs. Charoen Pokphand Foods | Stock Exchange vs. Information and Communication |
| Christiani Nielsen vs. CH Karnchang Public | Christiani Nielsen vs. Italian Thai Development Public | Christiani Nielsen vs. EMC Public | Christiani Nielsen vs. AAPICO Hitech 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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