Correlation Between ABSOLUTE CLEAN and City Sports
Can any of the company-specific risk be diversified away by investing in both ABSOLUTE CLEAN and City Sports 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 ABSOLUTE CLEAN and City Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABSOLUTE CLEAN ENERGY and City Sports and, you can compare the effects of market volatilities on ABSOLUTE CLEAN and City Sports 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 ABSOLUTE CLEAN with a short position of City Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABSOLUTE CLEAN and City Sports.
Diversification Opportunities for ABSOLUTE CLEAN and City Sports
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ABSOLUTE and City is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ABSOLUTE CLEAN ENERGY and City Sports and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Sports and ABSOLUTE CLEAN 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 ABSOLUTE CLEAN ENERGY are associated (or correlated) with City Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Sports has no effect on the direction of ABSOLUTE CLEAN i.e., ABSOLUTE CLEAN and City Sports go up and down completely randomly.
Pair Corralation between ABSOLUTE CLEAN and City Sports
If you would invest 8,950 in City Sports and on October 25, 2024 and sell it today you would earn a total of 75.00 from holding City Sports and or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABSOLUTE CLEAN ENERGY vs. City Sports and
Performance |
| Timeline |
| ABSOLUTE CLEAN ENERGY |
| City Sports |
ABSOLUTE CLEAN and City Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABSOLUTE CLEAN and City Sports
The main advantage of trading using opposite ABSOLUTE CLEAN and City Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABSOLUTE CLEAN position performs unexpectedly, City Sports 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 City Sports will offset losses from the drop in City Sports' long position.| ABSOLUTE CLEAN vs. Absolute Clean Energy | ABSOLUTE CLEAN vs. Super Energy | ABSOLUTE CLEAN vs. TPI Polene Power | ABSOLUTE CLEAN vs. CK Power Public |
| City Sports vs. Chiangmai Frozen Foods | City Sports vs. Dynasty Ceramic Public | City Sports vs. Castle Peak Holdings | City Sports vs. CPL Group Public |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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