Correlation Between Xiwang Special and Clean Energy
Can any of the company-specific risk be diversified away by investing in both Xiwang Special and Clean Energy 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 Xiwang Special and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiwang Special Steel and Clean Energy Fuels, you can compare the effects of market volatilities on Xiwang Special and Clean Energy 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 Xiwang Special with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Special and Clean Energy.
Diversification Opportunities for Xiwang Special and Clean Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xiwang and Clean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Special Steel and Clean Energy Fuels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Energy Fuels and Xiwang Special 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 Xiwang Special Steel are associated (or correlated) with Clean Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Energy Fuels has no effect on the direction of Xiwang Special i.e., Xiwang Special and Clean Energy go up and down completely randomly.
Pair Corralation between Xiwang Special and Clean Energy
Assuming the 90 days horizon Xiwang Special Steel is expected to generate 25.67 times more return on investment than Clean Energy. However, Xiwang Special is 25.67 times more volatile than Clean Energy Fuels. It trades about 0.09 of its potential returns per unit of risk. Clean Energy Fuels is currently generating about -0.01 per unit of risk. If you would invest 1.63 in Xiwang Special Steel on November 5, 2024 and sell it today you would lose (1.62) from holding Xiwang Special Steel or give up 99.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Special Steel vs. Clean Energy Fuels
Performance |
| Timeline |
| Xiwang Special Steel |
| Clean Energy Fuels |
Xiwang Special and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Special and Clean Energy
The main advantage of trading using opposite Xiwang Special and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Special position performs unexpectedly, Clean Energy 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 Clean Energy will offset losses from the drop in Clean Energy's long position.| Xiwang Special vs. PLAYWAY SA ZY 10 | Xiwang Special vs. TRAVEL LEISURE DL 01 | Xiwang Special vs. LG Display Co | Xiwang Special vs. THAI BEVERAGE |
| Clean Energy vs. Aya Gold Silver | Clean Energy vs. Strategic Education | Clean Energy vs. DEVRY EDUCATION GRP | Clean Energy vs. betterU Education Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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