Correlation Between Viva Leisure and Austchina Holdings
Can any of the company-specific risk be diversified away by investing in both Viva Leisure and Austchina Holdings 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 Viva Leisure and Austchina Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viva Leisure and Austchina Holdings, you can compare the effects of market volatilities on Viva Leisure and Austchina Holdings 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 Viva Leisure with a short position of Austchina Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viva Leisure and Austchina Holdings.
Diversification Opportunities for Viva Leisure and Austchina Holdings
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viva and Austchina is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Viva Leisure and Austchina Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austchina Holdings and Viva Leisure 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 Viva Leisure are associated (or correlated) with Austchina Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austchina Holdings has no effect on the direction of Viva Leisure i.e., Viva Leisure and Austchina Holdings go up and down completely randomly.
Pair Corralation between Viva Leisure and Austchina Holdings
Assuming the 90 days trading horizon Viva Leisure is expected to generate 52.61 times less return on investment than Austchina Holdings. But when comparing it to its historical volatility, Viva Leisure is 8.0 times less risky than Austchina Holdings. It trades about 0.01 of its potential returns per unit of risk. Austchina Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.10 in Austchina Holdings on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Austchina Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viva Leisure vs. Austchina Holdings
Performance |
| Timeline |
| Viva Leisure |
| Austchina Holdings |
Viva Leisure and Austchina Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viva Leisure and Austchina Holdings
The main advantage of trading using opposite Viva Leisure and Austchina Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viva Leisure position performs unexpectedly, Austchina Holdings 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 Austchina Holdings will offset losses from the drop in Austchina Holdings' long position.| Viva Leisure vs. DY6 Metals | Viva Leisure vs. Centaurus Metals | Viva Leisure vs. K2 Asset Management | Viva Leisure vs. Premier Investments |
| Austchina Holdings vs. Home Consortium | Austchina Holdings vs. BKI Investment | Austchina Holdings vs. Flagship Investments | Austchina Holdings vs. A1 Investments Resources |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |