Correlation Between 1847 Holdings and CK Hutchison

Can any of the company-specific risk be diversified away by investing in both 1847 Holdings and CK Hutchison 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 1847 Holdings and CK Hutchison into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 1847 Holdings LLC and CK Hutchison Holdings, you can compare the effects of market volatilities on 1847 Holdings and CK Hutchison 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 1847 Holdings with a short position of CK Hutchison. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1847 Holdings and CK Hutchison.

Diversification Opportunities for 1847 Holdings and CK Hutchison

0.48

Correlation Coefficient

1847 Holdings  CK Hutchison

Very weak diversification

The 3 months correlation between 1847 and CKHUY is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding 1847 Holdings LLC and CK Hutchison Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Hutchison Holdings and 1847 Holdings 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 1847 Holdings LLC are associated (or correlated) with CK Hutchison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Hutchison Holdings has no effect on the direction of 1847 Holdings i.e., 1847 Holdings and CK Hutchison go up and down completely randomly.

Pair Corralation between 1847 Holdings and CK Hutchison

Given the investment horizon of 90 days 1847 Holdings LLC is expected to under-perform the CK Hutchison. In addition to that, 1847 Holdings is 21.79 times more volatile than CK Hutchison Holdings. It trades about -0.07 of its total potential returns per unit of risk. CK Hutchison Holdings is currently generating about 0.03 per unit of volatility. If you would invest  527.00  in CK Hutchison Holdings on September 12, 2024 and sell it today you would earn a total of  14.00  from holding CK Hutchison Holdings or generate 2.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

1847 Holdings LLC  vs.  CK Hutchison Holdings

1847 Holdings LLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1847 Holdings LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

CK Hutchison Holdings

Risk-Adjusted Performance

2 of 100

Insignificant

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 strong basic indicators, CK Hutchison is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with 1847 Holdings and CK Hutchison

The main advantage of trading using opposite 1847 Holdings and CK Hutchison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1847 Holdings position performs unexpectedly, CK Hutchison 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 CK Hutchison will offset losses from the drop in CK Hutchison's long position.

The idea behind 1847 Holdings LLC and CK Hutchison Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.