Correlation Between Wharf Holdings and CK Asset
Can any of the company-specific risk be diversified away by investing in both Wharf Holdings 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 Wharf Holdings and CK Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wharf Holdings and CK Asset Holdings, you can compare the effects of market volatilities on Wharf Holdings 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 Wharf Holdings with a short position of CK Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wharf Holdings and CK Asset.
Diversification Opportunities for Wharf Holdings and CK Asset
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wharf and CHKGF is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wharf Holdings 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 Wharf Holdings 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 Wharf Holdings 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 Wharf Holdings i.e., Wharf Holdings and CK Asset go up and down completely randomly.
Pair Corralation between Wharf Holdings and CK Asset
If you would invest 549.00 in Wharf Holdings on August 25, 2024 and sell it today you would earn a total of 31.00 from holding Wharf Holdings or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Wharf Holdings vs. CK Asset Holdings
Performance |
| Timeline |
| Wharf Holdings |
| CK Asset Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Wharf Holdings and CK Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wharf Holdings and CK Asset
The main advantage of trading using opposite Wharf Holdings and CK Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wharf Holdings 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.| Wharf Holdings vs. Sun Hung Kai | Wharf Holdings vs. Sun Hung Kai | Wharf Holdings vs. China Resources Land | Wharf Holdings vs. China Resources Land |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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