Correlation Between Green World and Chinese Maritime
Can any of the company-specific risk be diversified away by investing in both Green World and Chinese Maritime 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 Green World and Chinese Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Chinese Maritime Transport, you can compare the effects of market volatilities on Green World and Chinese Maritime 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 Green World with a short position of Chinese Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Chinese Maritime.
Diversification Opportunities for Green World and Chinese Maritime
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Green and Chinese is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Chinese Maritime Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Maritime Tra and Green World 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 Green World Fintech are associated (or correlated) with Chinese Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Maritime Tra has no effect on the direction of Green World i.e., Green World and Chinese Maritime go up and down completely randomly.
Pair Corralation between Green World and Chinese Maritime
Assuming the 90 days trading horizon Green World Fintech is expected to under-perform the Chinese Maritime. In addition to that, Green World is 2.05 times more volatile than Chinese Maritime Transport. It trades about -0.22 of its total potential returns per unit of risk. Chinese Maritime Transport is currently generating about 0.02 per unit of volatility. If you would invest 4,235 in Chinese Maritime Transport on September 4, 2024 and sell it today you would earn a total of 25.00 from holding Chinese Maritime Transport or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green World Fintech vs. Chinese Maritime Transport
Performance |
| Timeline |
| Green World Fintech |
| Chinese Maritime Tra |
Green World and Chinese Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green World and Chinese Maritime
The main advantage of trading using opposite Green World and Chinese Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, Chinese Maritime 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 Chinese Maritime will offset losses from the drop in Chinese Maritime's long position.| Green World vs. Chinese Maritime Transport | Green World vs. First Insurance Co | Green World vs. Niko Semiconductor Co | Green World vs. Chung Hsin Electric Machinery |
| Chinese Maritime vs. Universal Microelectronics Co | Chinese Maritime vs. AVerMedia Technologies | Chinese Maritime vs. Symtek Automation Asia | Chinese Maritime vs. WiseChip Semiconductor |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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