Correlation Between China Clean and Allient
Can any of the company-specific risk be diversified away by investing in both China Clean and Allient 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 China Clean and Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Clean Energy and Allient, you can compare the effects of market volatilities on China Clean and Allient 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 China Clean with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Allient.
Diversification Opportunities for China Clean and Allient
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Allient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and China 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 China Clean Energy are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of China Clean i.e., China Clean and Allient go up and down completely randomly.
Pair Corralation between China Clean and Allient
If you would invest 1,727 in Allient on September 1, 2024 and sell it today you would earn a total of 870.00 from holding Allient or generate 50.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Clean Energy vs. Allient
Performance |
| Timeline |
| China Clean Energy |
| Allient |
China Clean and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and Allient
The main advantage of trading using opposite China Clean and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| China Clean vs. Elmos Semiconductor SE | China Clean vs. National Beverage Corp | China Clean vs. Analog Devices | China Clean vs. MagnaChip Semiconductor |
| Allient vs. Vicor | Allient vs. LSI Industries | Allient vs. Shenzhen Genvict Technologies | Allient vs. Topsec Technologies Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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