Correlation Between CHINA HUARONG and Komercn Banka
Can any of the company-specific risk be diversified away by investing in both CHINA HUARONG and Komercn Banka 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 CHINA HUARONG and Komercn Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA HUARONG ENERHD 50 and Komercn banka as, you can compare the effects of market volatilities on CHINA HUARONG and Komercn Banka 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 CHINA HUARONG with a short position of Komercn Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA HUARONG and Komercn Banka.
Diversification Opportunities for CHINA HUARONG and Komercn Banka
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CHINA and Komercn is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CHINA HUARONG ENERHD 50 and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as and CHINA HUARONG 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 CHINA HUARONG ENERHD 50 are associated (or correlated) with Komercn Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of CHINA HUARONG i.e., CHINA HUARONG and Komercn Banka go up and down completely randomly.
Pair Corralation between CHINA HUARONG and Komercn Banka
Assuming the 90 days trading horizon CHINA HUARONG ENERHD 50 is expected to under-perform the Komercn Banka. In addition to that, CHINA HUARONG is 9.47 times more volatile than Komercn banka as. It trades about -0.03 of its total potential returns per unit of risk. Komercn banka as is currently generating about 0.11 per unit of volatility. If you would invest 3,210 in Komercn banka as on September 13, 2024 and sell it today you would earn a total of 116.00 from holding Komercn banka as or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA HUARONG ENERHD 50 vs. Komercn banka as
Performance |
| Timeline |
| CHINA HUARONG ENERHD |
| Komercn banka as |
CHINA HUARONG and Komercn Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA HUARONG and Komercn Banka
The main advantage of trading using opposite CHINA HUARONG and Komercn Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA HUARONG position performs unexpectedly, Komercn Banka 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 Komercn Banka will offset losses from the drop in Komercn Banka's long position.| CHINA HUARONG vs. WILLIS LEASE FIN | CHINA HUARONG vs. SAFETY MEDICAL PROD | CHINA HUARONG vs. AVITA Medical | CHINA HUARONG vs. CarsalesCom |
| Komercn Banka vs. LG Display Co | Komercn Banka vs. Universal Entertainment | Komercn Banka vs. GigaMedia | Komercn Banka vs. Tencent Music Entertainment |
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.
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