Correlation Between China Xuefeng and Arrival Vault
Can any of the company-specific risk be diversified away by investing in both China Xuefeng and Arrival Vault 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 Xuefeng and Arrival Vault into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Xuefeng Environmental and Arrival Vault USA, you can compare the effects of market volatilities on China Xuefeng and Arrival Vault 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 Xuefeng with a short position of Arrival Vault. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Xuefeng and Arrival Vault.
Diversification Opportunities for China Xuefeng and Arrival Vault
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Arrival is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding China Xuefeng Environmental and Arrival Vault USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrival Vault USA and China Xuefeng 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 Xuefeng Environmental are associated (or correlated) with Arrival Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrival Vault USA has no effect on the direction of China Xuefeng i.e., China Xuefeng and Arrival Vault go up and down completely randomly.
Pair Corralation between China Xuefeng and Arrival Vault
Given the investment horizon of 90 days China Xuefeng Environmental is expected to generate 2.18 times more return on investment than Arrival Vault. However, China Xuefeng is 2.18 times more volatile than Arrival Vault USA. It trades about 0.1 of its potential returns per unit of risk. Arrival Vault USA is currently generating about -0.06 per unit of risk. If you would invest 7.00 in China Xuefeng Environmental on August 28, 2024 and sell it today you would lose (4.70) from holding China Xuefeng Environmental or give up 67.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.65% |
| Values | Daily Returns |
China Xuefeng Environmental vs. Arrival Vault USA
Performance |
| Timeline |
| China Xuefeng Enviro |
| Arrival Vault USA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Xuefeng and Arrival Vault Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Xuefeng and Arrival Vault
The main advantage of trading using opposite China Xuefeng and Arrival Vault positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Xuefeng position performs unexpectedly, Arrival Vault 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 Arrival Vault will offset losses from the drop in Arrival Vault's long position.| China Xuefeng vs. Isuzu Motors | China Xuefeng vs. Renault SA | China Xuefeng vs. Toyota Motor Corp | China Xuefeng vs. Porsche Automobile Holding |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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