Correlation Between Arkema SA and China Clean
Can any of the company-specific risk be diversified away by investing in both Arkema SA and China Clean 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 Arkema SA and China Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arkema SA ADR and China Clean Energy, you can compare the effects of market volatilities on Arkema SA and China Clean 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 Arkema SA with a short position of China Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkema SA and China Clean.
Diversification Opportunities for Arkema SA and China Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arkema and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arkema SA ADR and China Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Clean Energy and Arkema SA 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 Arkema SA ADR are associated (or correlated) with China Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Clean Energy has no effect on the direction of Arkema SA i.e., Arkema SA and China Clean go up and down completely randomly.
Pair Corralation between Arkema SA and China Clean
If you would invest 8,185 in Arkema SA ADR on November 27, 2024 and sell it today you would earn a total of 327.00 from holding Arkema SA ADR or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arkema SA ADR vs. China Clean Energy
Performance |
| Timeline |
| Arkema SA ADR |
| China Clean Energy |
Arkema SA and China Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkema SA and China Clean
The main advantage of trading using opposite Arkema SA and China Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkema SA position performs unexpectedly, China Clean 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 Clean will offset losses from the drop in China Clean's long position.| Arkema SA vs. Akzo Nobel NV | Arkema SA vs. Avoca LLC | Arkema SA vs. AGC Inc ADR | Arkema SA vs. AirBoss of America |
| China Clean vs. Academy Sports Outdoors | China Clean vs. flyExclusive, | China Clean vs. Emerson Radio | China Clean vs. International Consolidated Airlines |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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