Correlation Between American Creek and China Sun
Can any of the company-specific risk be diversified away by investing in both American Creek and China Sun 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 American Creek and China Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Creek Resources and China Sun Grp, you can compare the effects of market volatilities on American Creek and China Sun 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 American Creek with a short position of China Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Creek and China Sun.
Diversification Opportunities for American Creek and China Sun
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Creek Resources and China Sun Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sun Grp and American Creek 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 American Creek Resources are associated (or correlated) with China Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sun Grp has no effect on the direction of American Creek i.e., American Creek and China Sun go up and down completely randomly.
Pair Corralation between American Creek and China Sun
If you would invest 10.00 in American Creek Resources on November 5, 2024 and sell it today you would earn a total of 5.00 from holding American Creek Resources or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
American Creek Resources vs. China Sun Grp
Performance |
| Timeline |
| American Creek Resources |
| China Sun Grp |
American Creek and China Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Creek and China Sun
The main advantage of trading using opposite American Creek and China Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Creek position performs unexpectedly, China Sun 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 Sun will offset losses from the drop in China Sun's long position.| American Creek vs. Gold79 Mines | American Creek vs. Arctic Star Exploration | American Creek vs. American Clean Resources | American Creek vs. Arras Minerals Corp |
| China Sun vs. Curtis Mathes Corp | China Sun vs. alpha En | China Sun vs. Ieh Corp | China Sun vs. Methode Electronics |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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