Correlation Between Concord New and Pinterest
Can any of the company-specific risk be diversified away by investing in both Concord New and Pinterest 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 Concord New and Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord New Energy and Pinterest, you can compare the effects of market volatilities on Concord New and Pinterest 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 Concord New with a short position of Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord New and Pinterest.
Diversification Opportunities for Concord New and Pinterest
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Concord and Pinterest is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Concord New Energy and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest and Concord New 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 Concord New Energy are associated (or correlated) with Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Concord New i.e., Concord New and Pinterest go up and down completely randomly.
Pair Corralation between Concord New and Pinterest
If you would invest 7.00 in Concord New Energy on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Concord New Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Concord New Energy vs. Pinterest
Performance |
| Timeline |
| Concord New Energy |
Concord New and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord New and Pinterest
The main advantage of trading using opposite Concord New and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord New position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| Concord New vs. Pinterest | Concord New vs. Rumble Inc | Concord New vs. JBG SMITH Properties | Concord New vs. LGI Homes |
| Pinterest vs. Twilio Inc | Pinterest vs. Baidu Inc | Pinterest vs. Snap Inc | Pinterest vs. ANGI Homeservices |
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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