Correlation Between Cleanaway and C Media
Can any of the company-specific risk be diversified away by investing in both Cleanaway and C Media 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 Cleanaway and C Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Co and C Media Electronics, you can compare the effects of market volatilities on Cleanaway and C Media 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 Cleanaway with a short position of C Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway and C Media.
Diversification Opportunities for Cleanaway and C Media
Good diversification
The 3 months correlation between Cleanaway and 6237 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Co and C Media Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Media Electronics and Cleanaway 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 Cleanaway Co are associated (or correlated) with C Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Media Electronics has no effect on the direction of Cleanaway i.e., Cleanaway and C Media go up and down completely randomly.
Pair Corralation between Cleanaway and C Media
Assuming the 90 days trading horizon Cleanaway is expected to generate 7.55 times less return on investment than C Media. But when comparing it to its historical volatility, Cleanaway Co is 3.44 times less risky than C Media. It trades about 0.01 of its potential returns per unit of risk. C Media Electronics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,443 in C Media Electronics on September 12, 2024 and sell it today you would earn a total of 587.00 from holding C Media Electronics or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Co vs. C Media Electronics
Performance |
| Timeline |
| Cleanaway |
| C Media Electronics |
Cleanaway and C Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway and C Media
The main advantage of trading using opposite Cleanaway and C Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway position performs unexpectedly, C Media 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 C Media will offset losses from the drop in C Media's long position.| Cleanaway vs. Yang Ming Marine | Cleanaway vs. Wan Hai Lines | Cleanaway vs. U Ming Marine Transport | Cleanaway vs. Taiwan Navigation Co |
| C Media vs. WIN Semiconductors | C Media vs. GlobalWafers Co | C Media vs. Novatek Microelectronics Corp | C Media vs. Ruentex Development Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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