Correlation Between Valmont Industries and CK Hutchison
Can any of the company-specific risk be diversified away by investing in both Valmont Industries and CK Hutchison 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 Valmont Industries and CK Hutchison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valmont Industries and CK Hutchison Holdings, you can compare the effects of market volatilities on Valmont Industries and CK Hutchison 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 Valmont Industries with a short position of CK Hutchison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valmont Industries and CK Hutchison.
Diversification Opportunities for Valmont Industries and CK Hutchison
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Valmont and CKHUY is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Valmont Industries and CK Hutchison Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Hutchison Holdings and Valmont Industries 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 Valmont Industries are associated (or correlated) with CK Hutchison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Hutchison Holdings has no effect on the direction of Valmont Industries i.e., Valmont Industries and CK Hutchison go up and down completely randomly.
Pair Corralation between Valmont Industries and CK Hutchison
Considering the 90-day investment horizon Valmont Industries is expected to generate 1.24 times more return on investment than CK Hutchison. However, Valmont Industries is 1.24 times more volatile than CK Hutchison Holdings. It trades about 0.14 of its potential returns per unit of risk. CK Hutchison Holdings is currently generating about 0.03 per unit of risk. If you would invest 24,922 in Valmont Industries on September 3, 2024 and sell it today you would earn a total of 9,864 from holding Valmont Industries or generate 39.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valmont Industries vs. CK Hutchison Holdings
Performance |
| Timeline |
| Valmont Industries |
| CK Hutchison Holdings |
Valmont Industries and CK Hutchison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valmont Industries and CK Hutchison
The main advantage of trading using opposite Valmont Industries and CK Hutchison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valmont Industries position performs unexpectedly, CK Hutchison 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 Hutchison will offset losses from the drop in CK Hutchison's long position.| Valmont Industries vs. Matthews International | Valmont Industries vs. Griffon | Valmont Industries vs. Brookfield Business Partners | Valmont Industries vs. MDU Resources Group |
| CK Hutchison vs. TOMI Environmental Solutions | CK Hutchison vs. SCOR PK | CK Hutchison vs. HUMANA INC | CK Hutchison vs. Aquagold International |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |