Correlation Between China BlueChemical and CHEMICAL INDUSTRIES
Can any of the company-specific risk be diversified away by investing in both China BlueChemical and CHEMICAL INDUSTRIES 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 BlueChemical and CHEMICAL INDUSTRIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China BlueChemical and CHEMICAL INDUSTRIES, you can compare the effects of market volatilities on China BlueChemical and CHEMICAL INDUSTRIES 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 BlueChemical with a short position of CHEMICAL INDUSTRIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of China BlueChemical and CHEMICAL INDUSTRIES.
Diversification Opportunities for China BlueChemical and CHEMICAL INDUSTRIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and CHEMICAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China BlueChemical and CHEMICAL INDUSTRIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEMICAL INDUSTRIES and China BlueChemical 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 BlueChemical are associated (or correlated) with CHEMICAL INDUSTRIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEMICAL INDUSTRIES has no effect on the direction of China BlueChemical i.e., China BlueChemical and CHEMICAL INDUSTRIES go up and down completely randomly.
Pair Corralation between China BlueChemical and CHEMICAL INDUSTRIES
If you would invest 43.00 in CHEMICAL INDUSTRIES on August 27, 2024 and sell it today you would earn a total of 0.00 from holding CHEMICAL INDUSTRIES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China BlueChemical vs. CHEMICAL INDUSTRIES
Performance |
| Timeline |
| China BlueChemical |
| CHEMICAL INDUSTRIES |
China BlueChemical and CHEMICAL INDUSTRIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China BlueChemical and CHEMICAL INDUSTRIES
The main advantage of trading using opposite China BlueChemical and CHEMICAL INDUSTRIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China BlueChemical position performs unexpectedly, CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES will offset losses from the drop in CHEMICAL INDUSTRIES's long position.| China BlueChemical vs. Superior Plus Corp | China BlueChemical vs. NMI Holdings | China BlueChemical vs. Origin Agritech | China BlueChemical vs. SIVERS SEMICONDUCTORS AB |
| CHEMICAL INDUSTRIES vs. Apollo Medical Holdings | CHEMICAL INDUSTRIES vs. MGIC INVESTMENT | CHEMICAL INDUSTRIES vs. Diamyd Medical AB | CHEMICAL INDUSTRIES vs. Clean Energy Fuels |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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