Correlation Between CHINA TONTINE and QUEEN S

Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and QUEEN S 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 QUEEN S 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 QUEEN S ROAD, you can compare the effects of market volatilities on CHINA TONTINE and QUEEN S 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 QUEEN S. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and QUEEN S.

Diversification Opportunities for CHINA TONTINE and QUEEN S

0.0

Correlation Coefficient

CHINA TONTINE  QUEEN S

Pay attention - limited upside

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

Pair Corralation between CHINA TONTINE and QUEEN S

If you would invest  46.00  in QUEEN S ROAD on September 5, 2024 and sell it today you would earn a total of  3.00  from holding QUEEN S ROAD or generate 6.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

CHINA TONTINE WINES  vs.  QUEEN S ROAD

CHINA TONTINE WINES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHINA TONTINE WINES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, CHINA TONTINE is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

QUEEN S ROAD

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in QUEEN S ROAD are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, QUEEN S may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with CHINA TONTINE and QUEEN S

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

The idea behind CHINA TONTINE WINES and QUEEN S ROAD 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 Stocks Directory module to find actively traded stocks across global markets.