Correlation Between China Tontine and 00108WAF7

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both China Tontine and 00108WAF7 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 Tontine and 00108WAF7 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Tontine Wines and AEP TEX INC, you can compare the effects of market volatilities on China Tontine and 00108WAF7 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 Tontine with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and 00108WAF7.

Diversification Opportunities for China Tontine and 00108WAF7

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between China and 00108WAF7 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and China Tontine 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 Tontine Wines are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of China Tontine i.e., China Tontine and 00108WAF7 go up and down completely randomly.

Pair Corralation between China Tontine and 00108WAF7

If you would invest  7,813  in AEP TEX INC on September 15, 2024 and sell it today you would lose (145.00) from holding AEP TEX INC or give up 1.86% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy75.38%
ValuesDaily Returns

China Tontine Wines  vs.  AEP TEX INC

 Performance 
       Timeline  
China Tontine Wines 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days China Tontine Wines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Tontine is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
AEP TEX INC 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in AEP TEX INC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, 00108WAF7 sustained solid returns over the last few months and may actually be approaching a breakup point.

China Tontine and 00108WAF7 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with China Tontine and 00108WAF7

The main advantage of trading using opposite China Tontine and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.
The idea behind China Tontine Wines and AEP TEX INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Stocks Directory
Find actively traded stocks across global markets
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments