Correlation Between CHINA EAST and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both CHINA EAST and CHINA TONTINE 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 EAST and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA EAST ED and CHINA TONTINE WINES, you can compare the effects of market volatilities on CHINA EAST and CHINA TONTINE 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 EAST with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA EAST and CHINA TONTINE.
Diversification Opportunities for CHINA EAST and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA EAST ED and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and CHINA EAST 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 EAST ED are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of CHINA EAST i.e., CHINA EAST and CHINA TONTINE go up and down completely randomly.
Pair Corralation between CHINA EAST and CHINA TONTINE
If you would invest 26.00 in CHINA EAST ED on November 7, 2024 and sell it today you would earn a total of 5.00 from holding CHINA EAST ED or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
CHINA EAST ED vs. CHINA TONTINE WINES
Performance |
| Timeline |
| CHINA EAST ED |
| CHINA TONTINE WINES |
CHINA EAST and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA EAST and CHINA TONTINE
The main advantage of trading using opposite CHINA EAST and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA EAST position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| CHINA EAST vs. EPSILON HEALTHCARE LTD | CHINA EAST vs. MPH Health Care | CHINA EAST vs. Planet Fitness | CHINA EAST vs. National Health Investors |
| CHINA TONTINE vs. Erste Group Bank | CHINA TONTINE vs. SOUTHWEST AIRLINES | CHINA TONTINE vs. JAPAN AIRLINES | CHINA TONTINE vs. Discover Financial Services |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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