Correlation Between Cleanaway and Shuang Bang
Can any of the company-specific risk be diversified away by investing in both Cleanaway and Shuang Bang 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 Shuang Bang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Co and Shuang Bang Industrial, you can compare the effects of market volatilities on Cleanaway and Shuang Bang 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 Shuang Bang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway and Shuang Bang.
Diversification Opportunities for Cleanaway and Shuang Bang
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cleanaway and Shuang is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Co and Shuang Bang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuang Bang Industrial 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 Shuang Bang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuang Bang Industrial has no effect on the direction of Cleanaway i.e., Cleanaway and Shuang Bang go up and down completely randomly.
Pair Corralation between Cleanaway and Shuang Bang
Assuming the 90 days trading horizon Cleanaway is expected to generate 1.7 times less return on investment than Shuang Bang. But when comparing it to its historical volatility, Cleanaway Co is 2.3 times less risky than Shuang Bang. It trades about 0.39 of its potential returns per unit of risk. Shuang Bang Industrial is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,615 in Shuang Bang Industrial on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Shuang Bang Industrial or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Co vs. Shuang Bang Industrial
Performance |
| Timeline |
| Cleanaway |
| Shuang Bang Industrial |
Cleanaway and Shuang Bang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway and Shuang Bang
The main advantage of trading using opposite Cleanaway and Shuang Bang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway position performs unexpectedly, Shuang Bang 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 Shuang Bang will offset losses from the drop in Shuang Bang's long position.| Cleanaway vs. Sunny Friend Environmental | Cleanaway vs. Taiwan Secom Co | Cleanaway vs. TTET Union Corp | Cleanaway vs. ECOVE Environment Corp |
| Shuang Bang vs. Solar Applied Materials | Shuang Bang vs. Fulin Plastic Industry | Shuang Bang vs. DingZing Advanced Materials | Shuang Bang vs. Shih Kuen Plastics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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