Correlation Between American Clean and China Sun
Can any of the company-specific risk be diversified away by investing in both American Clean 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 Clean 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 Clean Resources and China Sun Grp, you can compare the effects of market volatilities on American Clean 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 Clean with a short position of China Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Clean and China Sun.
Diversification Opportunities for American Clean 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 Clean 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 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 American Clean 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 Clean i.e., American Clean and China Sun go up and down completely randomly.
Pair Corralation between American Clean and China Sun
If you would invest 325.00 in American Clean Resources on November 5, 2024 and sell it today you would earn a total of 180.00 from holding American Clean Resources or generate 55.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
American Clean Resources vs. China Sun Grp
Performance |
| Timeline |
| American Clean Resources |
| China Sun Grp |
American Clean and China Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Clean and China Sun
The main advantage of trading using opposite American Clean and China Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Clean 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 Clean vs. Gold79 Mines | American Clean vs. Arctic Star Exploration | American Clean vs. Arras Minerals Corp | American Clean vs. American Creek Resources |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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