Correlation Between JIAHUA STORES and Clean Energy
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES 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 JIAHUA STORES and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Clean Energy Fuels, you can compare the effects of market volatilities on JIAHUA STORES 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 JIAHUA STORES with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Clean Energy.
Diversification Opportunities for JIAHUA STORES and Clean Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Clean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES i.e., JIAHUA STORES and Clean Energy go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Clean Energy
If you would invest 270.00 in Clean Energy Fuels on October 9, 2024 and sell it today you would earn a total of 9.00 from holding Clean Energy Fuels or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JIAHUA STORES vs. Clean Energy Fuels
Performance |
| Timeline |
| JIAHUA STORES |
| Clean Energy Fuels |
JIAHUA STORES and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Clean Energy
The main advantage of trading using opposite JIAHUA STORES and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES 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.| JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc |
| Clean Energy vs. NESTE OYJ UNSPADR | Clean Energy vs. Superior Plus Corp | Clean Energy vs. NMI Holdings | Clean Energy vs. SIVERS SEMICONDUCTORS AB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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