Correlation Between China Conch and BRP

Can any of the company-specific risk be diversified away by investing in both China Conch and BRP 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 Conch and BRP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between China Conch Venture and BRP Inc, you can compare the effects of market volatilities on China Conch and BRP 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 Conch with a short position of BRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Conch and BRP.

Diversification Opportunities for China Conch and BRP

0.0

Correlation Coefficient

China Conch  BRP

Pay attention - limited upside

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

Pair Corralation between China Conch and BRP

If you would invest  93.00  in China Conch Venture on December 19, 2024 and sell it today you would earn a total of  0.00  from holding China Conch Venture or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

China Conch Venture  vs.  BRP Inc

China Conch Venture

Risk-Adjusted Performance

Very Weak

Over the last 90 days China Conch Venture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Conch is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

BRP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days BRP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with China Conch and BRP

The main advantage of trading using opposite China Conch and BRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Conch position performs unexpectedly, BRP 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 BRP will offset losses from the drop in BRP's long position.

The idea behind China Conch Venture and BRP 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.