Correlation Between Chuangs China and Clean Energy
Can any of the company-specific risk be diversified away by investing in both Chuangs China and Clean Energy 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 Chuangs China and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and Clean Energy Fuels, you can compare the effects of market volatilities on Chuangs China and Clean Energy 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 Chuangs China with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Clean Energy.
Diversification Opportunities for Chuangs China and Clean Energy
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chuangs and Clean is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and Clean Energy Fuels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Energy Fuels and Chuangs China 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 Chuangs China Investments are associated (or correlated) with Clean Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Energy Fuels has no effect on the direction of Chuangs China i.e., Chuangs China and Clean Energy go up and down completely randomly.
Pair Corralation between Chuangs China and Clean Energy
If you would invest 263.00 in Clean Energy Fuels on August 31, 2024 and sell it today you would earn a total of 37.00 from holding Clean Energy Fuels or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. Clean Energy Fuels
Performance |
| Timeline |
| Chuangs China Investments |
| Clean Energy Fuels |
Chuangs China and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and Clean Energy
The main advantage of trading using opposite Chuangs China and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China position performs unexpectedly, Clean Energy 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 Clean Energy will offset losses from the drop in Clean Energy's long position.| Chuangs China vs. Sun Hung Kai | Chuangs China vs. China Overseas Land | Chuangs China vs. CHINA VANKE TD | Chuangs China vs. Longfor Group Holdings |
| Clean Energy vs. STORE ELECTRONIC | Clean Energy vs. Astral Foods Limited | Clean Energy vs. AUSNUTRIA DAIRY | Clean Energy vs. JJ SNACK FOODS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |