Correlation Between TIMES CHINA and ADRIATIC METALS
Can any of the company-specific risk be diversified away by investing in both TIMES CHINA and ADRIATIC METALS 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 TIMES CHINA and ADRIATIC METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIMES CHINA HLDGS and ADRIATIC METALS LS 013355, you can compare the effects of market volatilities on TIMES CHINA and ADRIATIC METALS 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 TIMES CHINA with a short position of ADRIATIC METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIMES CHINA and ADRIATIC METALS.
Diversification Opportunities for TIMES CHINA and ADRIATIC METALS
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between TIMES and ADRIATIC is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding TIMES CHINA HLDGS and ADRIATIC METALS LS 013355 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADRIATIC METALS LS and TIMES CHINA 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 TIMES CHINA HLDGS are associated (or correlated) with ADRIATIC METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADRIATIC METALS LS has no effect on the direction of TIMES CHINA i.e., TIMES CHINA and ADRIATIC METALS go up and down completely randomly.
Pair Corralation between TIMES CHINA and ADRIATIC METALS
Assuming the 90 days horizon TIMES CHINA HLDGS is expected to under-perform the ADRIATIC METALS. In addition to that, TIMES CHINA is 1.24 times more volatile than ADRIATIC METALS LS 013355. It trades about -0.24 of its total potential returns per unit of risk. ADRIATIC METALS LS 013355 is currently generating about 0.11 per unit of volatility. If you would invest 230.00 in ADRIATIC METALS LS 013355 on October 25, 2024 and sell it today you would earn a total of 14.00 from holding ADRIATIC METALS LS 013355 or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TIMES CHINA HLDGS vs. ADRIATIC METALS LS 013355
Performance |
| Timeline |
| TIMES CHINA HLDGS |
| ADRIATIC METALS LS |
TIMES CHINA and ADRIATIC METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TIMES CHINA and ADRIATIC METALS
The main advantage of trading using opposite TIMES CHINA and ADRIATIC METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIMES CHINA position performs unexpectedly, ADRIATIC METALS 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 ADRIATIC METALS will offset losses from the drop in ADRIATIC METALS's long position.| TIMES CHINA vs. Dalata Hotel Group | TIMES CHINA vs. Summit Hotel Properties | TIMES CHINA vs. DALATA HOTEL | TIMES CHINA vs. INTERCONT HOTELS |
| ADRIATIC METALS vs. CAREER EDUCATION | ADRIATIC METALS vs. betterU Education Corp | ADRIATIC METALS vs. Adtalem Global Education | ADRIATIC METALS vs. Perdoceo Education |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |