Correlation Between BAIYU Holdings and Cleantech Power
Can any of the company-specific risk be diversified away by investing in both BAIYU Holdings and Cleantech Power 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 BAIYU Holdings and Cleantech Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BAIYU Holdings and Cleantech Power Corp, you can compare the effects of market volatilities on BAIYU Holdings and Cleantech Power 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 BAIYU Holdings with a short position of Cleantech Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIYU Holdings and Cleantech Power.
Diversification Opportunities for BAIYU Holdings and Cleantech Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BAIYU and Cleantech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BAIYU Holdings and Cleantech Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleantech Power Corp and BAIYU Holdings 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 BAIYU Holdings are associated (or correlated) with Cleantech Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleantech Power Corp has no effect on the direction of BAIYU Holdings i.e., BAIYU Holdings and Cleantech Power go up and down completely randomly.
Pair Corralation between BAIYU Holdings and Cleantech Power
If you would invest 0.59 in Cleantech Power Corp on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Cleantech Power Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
BAIYU Holdings vs. Cleantech Power Corp
Performance |
| Timeline |
| BAIYU Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cleantech Power Corp |
BAIYU Holdings and Cleantech Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIYU Holdings and Cleantech Power
The main advantage of trading using opposite BAIYU Holdings and Cleantech Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIYU Holdings position performs unexpectedly, Cleantech Power 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 Cleantech Power will offset losses from the drop in Cleantech Power's long position.| BAIYU Holdings vs. Valneva SE ADR | BAIYU Holdings vs. Apogee Therapeutics, Common | BAIYU Holdings vs. FitLife Brands, Common | BAIYU Holdings vs. Grupo Simec SAB |
| Cleantech Power vs. Legacy Education | Cleantech Power vs. Apple Inc | Cleantech Power vs. NVIDIA | Cleantech Power vs. Microsoft |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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