Correlation Between China Tontine and Umbra Companies

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Can any of the company-specific risk be diversified away by investing in both China Tontine and Umbra Companies 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 Tontine and Umbra Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Tontine Wines and Umbra Companies, you can compare the effects of market volatilities on China Tontine and Umbra Companies 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 Tontine with a short position of Umbra Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and Umbra Companies.

Diversification Opportunities for China Tontine and Umbra Companies

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between China and Umbra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines and Umbra Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umbra Companies and China Tontine 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 Tontine Wines are associated (or correlated) with Umbra Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umbra Companies has no effect on the direction of China Tontine i.e., China Tontine and Umbra Companies go up and down completely randomly.

Pair Corralation between China Tontine and Umbra Companies

If you would invest  7.10  in China Tontine Wines on September 10, 2025 and sell it today you would earn a total of  0.00  from holding China Tontine Wines or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

China Tontine Wines  vs.  Umbra Companies

 Performance 
       Timeline  
China Tontine Wines 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days China Tontine Wines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, China Tontine is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Umbra Companies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Umbra Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

China Tontine and Umbra Companies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with China Tontine and Umbra Companies

The main advantage of trading using opposite China Tontine and Umbra Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine position performs unexpectedly, Umbra Companies 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 Umbra Companies will offset losses from the drop in Umbra Companies' long position.
The idea behind China Tontine Wines and Umbra Companies 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 Stocks Directory module to find actively traded stocks across global markets.

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