Correlation Between Aba Chemicals and GreenTech Environmental
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By analyzing existing cross correlation between Aba Chemicals Corp and GreenTech Environmental Co, you can compare the effects of market volatilities on Aba Chemicals and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and GreenTech Environmental.
Diversification Opportunities for Aba Chemicals and GreenTech Environmental
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aba and GreenTech is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Aba Chemicals and GreenTech Environmental
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the GreenTech Environmental. In addition to that, Aba Chemicals is 1.14 times more volatile than GreenTech Environmental Co. It trades about -0.02 of its total potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.01 per unit of volatility. If you would invest 1,524 in GreenTech Environmental Co on November 4, 2024 and sell it today you would lose (139.00) from holding GreenTech Environmental Co or give up 9.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. GreenTech Environmental Co
Performance |
| Timeline |
| Aba Chemicals Corp |
| GreenTech Environmental |
Aba Chemicals and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and GreenTech Environmental
The main advantage of trading using opposite Aba Chemicals and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental'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 |
| GreenTech Environmental vs. Keeson Technology Corp | GreenTech Environmental vs. UCloud Technology Co | GreenTech Environmental vs. Qingdao Haier Biomedical | GreenTech Environmental vs. Sino Medical Sciences |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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