Correlation Between Cshg Logistica and Cshg Jhsf

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

By analyzing existing cross correlation between Cshg Logistica and Cshg Jhsf Prime, you can compare the effects of market volatilities on Cshg Logistica and Cshg Jhsf 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 Cshg Logistica with a short position of Cshg Jhsf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Logistica and Cshg Jhsf.

Diversification Opportunities for Cshg Logistica and Cshg Jhsf

0.62

Correlation Coefficient

Cshg Logistica  Cshg Jhsf

Poor diversification

The 3 months correlation between Cshg and Cshg is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Logistica and Cshg Jhsf Prime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cshg Jhsf Prime and Cshg Logistica 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 Cshg Logistica are associated (or correlated) with Cshg Jhsf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cshg Jhsf Prime has no effect on the direction of Cshg Logistica i.e., Cshg Logistica and Cshg Jhsf go up and down completely randomly.

Pair Corralation between Cshg Logistica and Cshg Jhsf

Assuming the 90 days trading horizon Cshg Logistica is expected to under-perform the Cshg Jhsf. But the fund apears to be less risky and, when comparing its historical volatility, Cshg Logistica is 1.23 times less risky than Cshg Jhsf. The fund trades about -0.02 of its potential returns per unit of risk. The Cshg Jhsf Prime is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  12,786  in Cshg Jhsf Prime on December 30, 2024 and sell it today you would earn a total of  454.00  from holding Cshg Jhsf Prime or generate 3.55% return on investment over 90 days.

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

Cshg Logistica   vs.  Cshg Jhsf Prime

Cshg Logistica

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cshg Logistica has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong essential indicators, Cshg Logistica is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cshg Jhsf Prime

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cshg Jhsf Prime are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Cshg Jhsf is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cshg Logistica and Cshg Jhsf

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

The idea behind Cshg Logistica and Cshg Jhsf Prime 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.