Correlation Between CK Hutchison and Rjd Green

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

By analyzing existing cross correlation between CK Hutchison Holdings and Rjd Green, you can compare the effects of market volatilities on CK Hutchison and Rjd Green 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 CK Hutchison with a short position of Rjd Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Hutchison and Rjd Green.

Diversification Opportunities for CK Hutchison and Rjd Green

-0.56

Correlation Coefficient

CK Hutchison  Rjd Green

Excellent diversification

The 3 months correlation between CKHUY and Rjd is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CK Hutchison Holdings and Rjd Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rjd Green and CK Hutchison 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 CK Hutchison Holdings are associated (or correlated) with Rjd Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rjd Green has no effect on the direction of CK Hutchison i.e., CK Hutchison and Rjd Green go up and down completely randomly.

Pair Corralation between CK Hutchison and Rjd Green

Assuming the 90 days horizon CK Hutchison is expected to generate 2.45 times less return on investment than Rjd Green. But when comparing it to its historical volatility, CK Hutchison Holdings is 3.0 times less risky than Rjd Green. It trades about 0.04 of its potential returns per unit of risk. Rjd Green is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  0.80  in Rjd Green on December 24, 2024 and sell it today you would lose (0.05) from holding Rjd Green or give up 6.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

CK Hutchison Holdings  vs.  Rjd Green

CK Hutchison Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CK Hutchison Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, CK Hutchison may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Rjd Green

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rjd Green are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting fundamental indicators, Rjd Green reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CK Hutchison and Rjd Green

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

The idea behind CK Hutchison Holdings and Rjd Green 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.