Correlation Between China Changjiang and FTC Solar
Can any of the company-specific risk be diversified away by investing in both China Changjiang and FTC Solar 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 Changjiang and FTC Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Changjiang Mining and FTC Solar, you can compare the effects of market volatilities on China Changjiang and FTC Solar 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 Changjiang with a short position of FTC Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Changjiang and FTC Solar.
Diversification Opportunities for China Changjiang and FTC Solar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and FTC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Changjiang Mining and FTC Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTC Solar and China Changjiang 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 Changjiang Mining are associated (or correlated) with FTC Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTC Solar has no effect on the direction of China Changjiang i.e., China Changjiang and FTC Solar go up and down completely randomly.
Pair Corralation between China Changjiang and FTC Solar
If you would invest 56.00 in FTC Solar on September 3, 2024 and sell it today you would lose (25.00) from holding FTC Solar or give up 44.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Changjiang Mining vs. FTC Solar
Performance |
| Timeline |
| China Changjiang Mining |
| FTC Solar |
China Changjiang and FTC Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Changjiang and FTC Solar
The main advantage of trading using opposite China Changjiang and FTC Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Changjiang position performs unexpectedly, FTC Solar 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 FTC Solar will offset losses from the drop in FTC Solar's long position.| China Changjiang vs. Inflection Point Acquisition | China Changjiang vs. EMCOR Group | China Changjiang vs. Griffon | China Changjiang vs. Jacobs Solutions |
| FTC Solar vs. Sunnova Energy International | FTC Solar vs. JinkoSolar Holding | FTC Solar vs. Nextracker Class A | FTC Solar vs. Canadian Solar |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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