Correlation Between China Health and Black Knight
Can any of the company-specific risk be diversified away by investing in both China Health and Black Knight 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 Health and Black Knight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Health Industries and Black Knight, you can compare the effects of market volatilities on China Health and Black Knight 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 Health with a short position of Black Knight. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Health and Black Knight.
Diversification Opportunities for China Health and Black Knight
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Black is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Health Industries and Black Knight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Knight and China Health 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 Health Industries are associated (or correlated) with Black Knight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Knight has no effect on the direction of China Health i.e., China Health and Black Knight go up and down completely randomly.
Pair Corralation between China Health and Black Knight
If you would invest 29.00 in China Health Industries on February 8, 2024 and sell it today you would earn a total of 44.00 from holding China Health Industries or generate 151.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.35% |
Values | Daily Returns |
China Health Industries vs. Black Knight
Performance |
Timeline |
China Health Industries |
Black Knight |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Health and Black Knight Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Health and Black Knight
The main advantage of trading using opposite China Health and Black Knight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Health position performs unexpectedly, Black Knight 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 Black Knight will offset losses from the drop in Black Knight's long position.China Health vs. Limoneira Co | China Health vs. Fresh Del Monte | China Health vs. Vital FarmsInc | China Health vs. Alico Inc |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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