Correlation Between GreenTech Environmental and China State
Specify exactly 2 symbols:
By analyzing existing cross correlation between GreenTech Environmental Co and China State Construction, you can compare the effects of market volatilities on GreenTech Environmental and China State 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 GreenTech Environmental with a short position of China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and China State.
Diversification Opportunities for GreenTech Environmental and China State
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenTech and China is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental Co and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction and GreenTech Environmental 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 GreenTech Environmental Co are associated (or correlated) with China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of GreenTech Environmental i.e., GreenTech Environmental and China State go up and down completely randomly.
Pair Corralation between GreenTech Environmental and China State
Assuming the 90 days trading horizon GreenTech Environmental Co is expected to generate 1.86 times more return on investment than China State. However, GreenTech Environmental is 1.86 times more volatile than China State Construction. It trades about 0.15 of its potential returns per unit of risk. China State Construction is currently generating about -0.14 per unit of risk. If you would invest 1,325 in GreenTech Environmental Co on November 4, 2024 and sell it today you would earn a total of 60.00 from holding GreenTech Environmental Co or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. China State Construction
Performance |
| Timeline |
| GreenTech Environmental |
| China State Construction |
GreenTech Environmental and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and China State
The main advantage of trading using opposite GreenTech Environmental and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| GreenTech Environmental vs. Keeson Technology Corp | GreenTech Environmental vs. UCloud Technology Co | GreenTech Environmental vs. Qingdao Haier Biomedical | GreenTech Environmental vs. Sino Medical Sciences |
| China State vs. Beijing Jiaman Dress | China State vs. Hua Hong Semiconductor | China State vs. Union Semiconductor Co | China State vs. Ingenic 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |