Correlation Between Aba Chemicals and Grandblue Environment
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By analyzing existing cross correlation between Aba Chemicals Corp and Grandblue Environment Co, you can compare the effects of market volatilities on Aba Chemicals and Grandblue Environment 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 Aba Chemicals with a short position of Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Grandblue Environment.
Diversification Opportunities for Aba Chemicals and Grandblue Environment
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aba and Grandblue is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Grandblue Environment go up and down completely randomly.
Pair Corralation between Aba Chemicals and Grandblue Environment
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Grandblue Environment. In addition to that, Aba Chemicals is 1.52 times more volatile than Grandblue Environment Co. It trades about -0.1 of its total potential returns per unit of risk. Grandblue Environment Co is currently generating about -0.14 per unit of volatility. If you would invest 2,365 in Grandblue Environment Co on November 4, 2024 and sell it today you would lose (92.00) from holding Grandblue Environment Co or give up 3.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Grandblue Environment Co
Performance |
| Timeline |
| Aba Chemicals Corp |
| Grandblue Environment |
Aba Chemicals and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Grandblue Environment
The main advantage of trading using opposite Aba Chemicals and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| Aba Chemicals vs. Tongyu Communication | Aba Chemicals vs. Eyebright Medical Technology | Aba Chemicals vs. China Sports Industry | Aba Chemicals vs. Fujian Newland Computer |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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