Correlation Between CHKEZ Old and China Gold
Can any of the company-specific risk be diversified away by investing in both CHKEZ Old and China Gold 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 CHKEZ Old and China Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHKEZ Old and China Gold International, you can compare the effects of market volatilities on CHKEZ Old and China Gold 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 CHKEZ Old with a short position of China Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHKEZ Old and China Gold.
Diversification Opportunities for CHKEZ Old and China Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHKEZ and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHKEZ Old and China Gold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Gold International and CHKEZ Old 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 CHKEZ Old are associated (or correlated) with China Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Gold International has no effect on the direction of CHKEZ Old i.e., CHKEZ Old and China Gold go up and down completely randomly.
Pair Corralation between CHKEZ Old and China Gold
If you would invest 480.00 in China Gold International on December 30, 2024 and sell it today you would earn a total of 190.00 from holding China Gold International or generate 39.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
CHKEZ Old vs. China Gold International
Performance |
Timeline |
CHKEZ Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
China Gold International |
CHKEZ Old and China Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CHKEZ Old and China Gold
The main advantage of trading using opposite CHKEZ Old and China Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHKEZ Old position performs unexpectedly, China Gold 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 Gold will offset losses from the drop in China Gold's long position.CHKEZ Old vs. Entegris | CHKEZ Old vs. Analog Devices | CHKEZ Old vs. MagnaChip Semiconductor | CHKEZ Old vs. Ardelyx |
China Gold vs. Edison Cobalt Corp | China Gold vs. Champion Bear Resources | China Gold vs. Avarone Metals | China Gold vs. Adriatic Metals PLC |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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