Correlation Between GCL-Poly Energy and Three Sixty
Can any of the company-specific risk be diversified away by investing in both GCL-Poly Energy and Three Sixty 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 GCL-Poly Energy and Three Sixty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCL Poly Energy Holdings and Three Sixty Solar, you can compare the effects of market volatilities on GCL-Poly Energy and Three Sixty 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 GCL-Poly Energy with a short position of Three Sixty. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCL-Poly Energy and Three Sixty.
Diversification Opportunities for GCL-Poly Energy and Three Sixty
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GCL-Poly and Three is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GCL Poly Energy Holdings and Three Sixty Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Three Sixty Solar and GCL-Poly Energy 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 GCL Poly Energy Holdings are associated (or correlated) with Three Sixty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Three Sixty Solar has no effect on the direction of GCL-Poly Energy i.e., GCL-Poly Energy and Three Sixty go up and down completely randomly.
Pair Corralation between GCL-Poly Energy and Three Sixty
If you would invest 13.00 in GCL Poly Energy Holdings on November 3, 2024 and sell it today you would earn a total of 2.00 from holding GCL Poly Energy Holdings or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GCL Poly Energy Holdings vs. Three Sixty Solar
Performance |
| Timeline |
| GCL Poly Energy |
| Three Sixty Solar |
GCL-Poly Energy and Three Sixty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GCL-Poly Energy and Three Sixty
The main advantage of trading using opposite GCL-Poly Energy and Three Sixty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCL-Poly Energy position performs unexpectedly, Three Sixty 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 Three Sixty will offset losses from the drop in Three Sixty's long position.| GCL-Poly Energy vs. SMA Solar Technology | GCL-Poly Energy vs. Xinyi Solar Holdings | GCL-Poly Energy vs. SMA Solar Technology | GCL-Poly Energy vs. Three Sixty Solar |
| Three Sixty vs. SMA Solar Technology | Three Sixty vs. Xinyi Solar Holdings | Three Sixty vs. SMA Solar Technology | Three Sixty vs. GCL Poly Energy Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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