Correlation Between Chilco River and Hang Seng
Can any of the company-specific risk be diversified away by investing in both Chilco River and Hang Seng 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 Chilco River and Hang Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chilco River Holdings and Hang Seng Bank, you can compare the effects of market volatilities on Chilco River and Hang Seng 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 Chilco River with a short position of Hang Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chilco River and Hang Seng.
Diversification Opportunities for Chilco River and Hang Seng
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chilco and Hang is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Chilco River Holdings and Hang Seng Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng Bank and Chilco River 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 Chilco River Holdings are associated (or correlated) with Hang Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Seng Bank has no effect on the direction of Chilco River i.e., Chilco River and Hang Seng go up and down completely randomly.
Pair Corralation between Chilco River and Hang Seng
Given the investment horizon of 90 days Chilco River Holdings is expected to generate 12.33 times more return on investment than Hang Seng. However, Chilco River is 12.33 times more volatile than Hang Seng Bank. It trades about 0.09 of its potential returns per unit of risk. Hang Seng Bank is currently generating about 0.17 per unit of risk. If you would invest 2.99 in Chilco River Holdings on September 7, 2025 and sell it today you would lose (0.39) from holding Chilco River Holdings or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chilco River Holdings vs. Hang Seng Bank
Performance |
| Timeline |
| Chilco River Holdings |
| Hang Seng Bank |
Chilco River and Hang Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chilco River and Hang Seng
The main advantage of trading using opposite Chilco River and Hang Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chilco River position performs unexpectedly, Hang Seng 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 Hang Seng will offset losses from the drop in Hang Seng's long position.| Chilco River vs. Symbotic | Chilco River vs. MNTN, Inc | Chilco River vs. Lionsgate Studios Holding | Chilco River vs. Petro Usa |
| Hang Seng vs. The Peoples Insurance | Hang Seng vs. Safety Insurance Group | Hang Seng vs. Darden Restaurants | Hang Seng vs. Life Insurance |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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