Correlation Between Sun Hung and CK Asset
Can any of the company-specific risk be diversified away by investing in both Sun Hung 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 Sun Hung and CK Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Hung Kai and CK Asset Holdings, you can compare the effects of market volatilities on Sun Hung 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 Sun Hung with a short position of CK Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Hung and CK Asset.
Diversification Opportunities for Sun Hung and CK Asset
Pay attention - limited upside
The 3 months correlation between Sun and CHKGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Hung Kai 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 Sun Hung 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 Sun Hung Kai 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 Sun Hung i.e., Sun Hung and CK Asset go up and down completely randomly.
Pair Corralation between Sun Hung and CK Asset
If you would invest (100.00) in CK Asset Holdings on November 19, 2024 and sell it today you would earn a total of 100.00 from holding CK Asset Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sun Hung Kai vs. CK Asset Holdings
Performance |
| Timeline |
| Sun Hung Kai |
| CK Asset Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Sun Hung and CK Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Hung and CK Asset
The main advantage of trading using opposite Sun Hung and CK Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Hung 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.| Sun Hung vs. Hong Kong Land | Sun Hung vs. Wharf Holdings | Sun Hung vs. Holiday Island Holdings | Sun Hung vs. Bayport International Holdings |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |