Correlation Between CK Infrastructure and VOLVO B

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

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

Diversification Opportunities for CK Infrastructure and VOLVO B

0.38

Correlation Coefficient

CK Infrastructure  VOLVO B

Weak diversification

The 3 months correlation between CHH and VOLVO is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CK Infrastructure Holdings and VOLVO B UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VOLVO B UNSPADR and CK Infrastructure 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 CK Infrastructure Holdings are associated (or correlated) with VOLVO B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VOLVO B UNSPADR has no effect on the direction of CK Infrastructure i.e., CK Infrastructure and VOLVO B go up and down completely randomly.

Pair Corralation between CK Infrastructure and VOLVO B

Assuming the 90 days horizon CK Infrastructure Holdings is expected to generate 1.06 times more return on investment than VOLVO B. However, CK Infrastructure is 1.06 times more volatile than VOLVO B UNSPADR. It trades about 0.06 of its potential returns per unit of risk. VOLVO B UNSPADR is currently generating about 0.02 per unit of risk. If you would invest  527.00  in CK Infrastructure Holdings on April 22, 2025 and sell it today you would earn a total of  37.00  from holding CK Infrastructure Holdings or generate 7.02% return on investment over 90 days.

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

CK Infrastructure Holdings  vs.  VOLVO B UNSPADR

CK Infrastructure

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CK Infrastructure Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CK Infrastructure may actually be approaching a critical reversion point that can send shares even higher in August 2025.

VOLVO B UNSPADR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VOLVO B UNSPADR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, VOLVO B is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CK Infrastructure and VOLVO B

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

The idea behind CK Infrastructure Holdings and VOLVO B UNSPADR 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.