Correlation Between China Clean and National Vision
Can any of the company-specific risk be diversified away by investing in both China Clean and National Vision 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 National Vision 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 National Vision Holdings, you can compare the effects of market volatilities on China Clean and National Vision 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 National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and National Vision.
Diversification Opportunities for China Clean and National Vision
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision Holdings 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 National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of China Clean i.e., China Clean and National Vision go up and down completely randomly.
Pair Corralation between China Clean and National Vision
If you would invest 1,123 in National Vision Holdings on November 27, 2024 and sell it today you would earn a total of 43.00 from holding National Vision Holdings or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Clean Energy vs. National Vision Holdings
Performance |
| Timeline |
| China Clean Energy |
| National Vision Holdings |
China Clean and National Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and National Vision
The main advantage of trading using opposite China Clean and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean position performs unexpectedly, National Vision 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 National Vision will offset losses from the drop in National Vision's long position.| China Clean vs. Academy Sports Outdoors | China Clean vs. flyExclusive, | China Clean vs. Emerson Radio | China Clean vs. International Consolidated Airlines |
| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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