Correlation Between China Clean and Roma Green
Can any of the company-specific risk be diversified away by investing in both China Clean and Roma Green 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 Roma Green 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 Roma Green Finance, you can compare the effects of market volatilities on China Clean and Roma Green 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 Roma Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Roma Green.
Diversification Opportunities for China Clean and Roma Green
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Roma is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy and Roma Green Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roma Green Finance 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 Roma Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roma Green Finance has no effect on the direction of China Clean i.e., China Clean and Roma Green go up and down completely randomly.
Pair Corralation between China Clean and Roma Green
If you would invest 290.00 in Roma Green Finance on September 12, 2024 and sell it today you would lose (202.10) from holding Roma Green Finance or give up 69.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 70.69% |
| Values | Daily Returns |
China Clean Energy vs. Roma Green Finance
Performance |
| Timeline |
| China Clean Energy |
| Roma Green Finance |
China Clean and Roma Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and Roma Green
The main advantage of trading using opposite China Clean and Roma Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean position performs unexpectedly, Roma Green 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 Roma Green will offset losses from the drop in Roma Green's long position.| China Clean vs. Afya | China Clean vs. Amkor Technology | China Clean vs. Delek Logistics Partners | China Clean vs. 51Talk Online Education |
| Roma Green vs. Compania Cervecerias Unidas | Roma Green vs. China Clean Energy | Roma Green vs. Westrock Coffee | Roma Green vs. Fernhill Beverage |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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