Correlation Between China Infrastructure and Green Cures
Can any of the company-specific risk be diversified away by investing in both China Infrastructure and Green Cures 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 Infrastructure and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Infrastructure Construction and Green Cures Botanical, you can compare the effects of market volatilities on China Infrastructure and Green Cures 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 Infrastructure with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Infrastructure and Green Cures.
Diversification Opportunities for China Infrastructure and Green Cures
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Green is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding China Infrastructure Construct and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical and China Infrastructure 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 Infrastructure Construction are associated (or correlated) with Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of China Infrastructure i.e., China Infrastructure and Green Cures go up and down completely randomly.
Pair Corralation between China Infrastructure and Green Cures
If you would invest 0.02 in Green Cures Botanical on November 2, 2024 and sell it today you would lose (0.01) from holding Green Cures Botanical or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.96% |
| Values | Daily Returns |
China Infrastructure Construct vs. Green Cures Botanical
Performance |
| Timeline |
| China Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Green Cures Botanical |
China Infrastructure and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Infrastructure and Green Cures
The main advantage of trading using opposite China Infrastructure and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Infrastructure position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.| China Infrastructure vs. Medicine Man Technologies | China Infrastructure vs. Kona Gold Solutions | China Infrastructure vs. Green Thumb Industries | China Infrastructure vs. Cann American Corp |
| Green Cures vs. Cann American Corp | Green Cures vs. Rimrock Gold Corp | Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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