Correlation Between China Index and CooTek
Can any of the company-specific risk be diversified away by investing in both China Index and CooTek 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 Index and CooTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Index Holdings and CooTek Inc, you can compare the effects of market volatilities on China Index and CooTek 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 Index with a short position of CooTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Index and CooTek.
Diversification Opportunities for China Index and CooTek
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 11 months correlation between China and CooTek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Index Holdings and CooTek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CooTek Inc and China Index 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 Index Holdings are associated (or correlated) with CooTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CooTek Inc has no effect on the direction of China Index i.e., China Index and CooTek go up and down completely randomly.
Pair Corralation between China Index and CooTek
If you would invest 97.00 in China Index Holdings on December 20, 2023 and sell it today you would lose (2.00) from holding China Index Holdings or give up 2.06% of portfolio value over 90 days.
Time Period | 11 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
China Index Holdings vs. CooTek Inc
Performance |
Timeline |
China Index Holdings |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
CooTek Inc |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
China Index and CooTek Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Index and CooTek
The main advantage of trading using opposite China Index and CooTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Index position performs unexpectedly, CooTek 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 CooTek will offset losses from the drop in CooTek's long position.China Index vs. Hf Foods Group | China Index vs. Sovos Brands | China Index vs. Volaris | China Index vs. Hanover Foods |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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