Correlation Between Terna Rete and CK Infrastructure
Can any of the company-specific risk be diversified away by investing in both Terna Rete and CK Infrastructure 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 Terna Rete and CK Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terna Rete and CK Infrastructure Holdings, you can compare the effects of market volatilities on Terna Rete and CK Infrastructure 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 Terna Rete with a short position of CK Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terna Rete and CK Infrastructure.
Diversification Opportunities for Terna Rete and CK Infrastructure
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Terna and CHH is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Terna Rete and CK Infrastructure Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Infrastructure and Terna Rete 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 Terna Rete are associated (or correlated) with CK Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Infrastructure has no effect on the direction of Terna Rete i.e., Terna Rete and CK Infrastructure go up and down completely randomly.
Pair Corralation between Terna Rete and CK Infrastructure
Assuming the 90 days horizon Terna Rete is expected to generate 0.47 times more return on investment than CK Infrastructure. However, Terna Rete is 2.14 times less risky than CK Infrastructure. It trades about 0.1 of its potential returns per unit of risk. CK Infrastructure Holdings is currently generating about -0.04 per unit of risk. If you would invest 758.00 in Terna Rete on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Terna Rete or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terna Rete vs. CK Infrastructure Holdings
Performance |
| Timeline |
| Terna Rete |
| CK Infrastructure |
Terna Rete and CK Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terna Rete and CK Infrastructure
The main advantage of trading using opposite Terna Rete and CK Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terna Rete position performs unexpectedly, CK Infrastructure 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 Infrastructure will offset losses from the drop in CK Infrastructure's long position.| Terna Rete vs. TITAN MACHINERY | Terna Rete vs. Singapore Reinsurance | Terna Rete vs. REVO INSURANCE SPA | Terna Rete vs. Dairy Farm International |
| CK Infrastructure vs. INSURANCE AUST GRP | CK Infrastructure vs. MSAD INSURANCE | CK Infrastructure vs. URBAN OUTFITTERS | CK Infrastructure vs. Singapore Reinsurance |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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