Correlation Between Newpark Resources and China Clean
Can any of the company-specific risk be diversified away by investing in both Newpark Resources and China Clean 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 Newpark Resources and China Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newpark Resources and China Clean Energy, you can compare the effects of market volatilities on Newpark Resources and China Clean 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 Newpark Resources with a short position of China Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newpark Resources and China Clean.
Diversification Opportunities for Newpark Resources and China Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newpark and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newpark Resources and China Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Clean Energy and Newpark Resources 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 Newpark Resources are associated (or correlated) with China Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Clean Energy has no effect on the direction of Newpark Resources i.e., Newpark Resources and China Clean go up and down completely randomly.
Pair Corralation between Newpark Resources and China Clean
If you would invest 686.00 in Newpark Resources on September 4, 2024 and sell it today you would earn a total of 153.00 from holding Newpark Resources or generate 22.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Newpark Resources vs. China Clean Energy
Performance |
| Timeline |
| Newpark Resources |
| China Clean Energy |
Newpark Resources and China Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newpark Resources and China Clean
The main advantage of trading using opposite Newpark Resources and China Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newpark Resources position performs unexpectedly, China Clean 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 China Clean will offset losses from the drop in China Clean's long position.| Newpark Resources vs. Now Inc | Newpark Resources vs. Enerflex | Newpark Resources vs. Bristow Group | Newpark Resources vs. Forum Energy Technologies |
| China Clean vs. Meiwu Technology Co | China Clean vs. The Gap, | China Clean vs. Transocean | China Clean vs. Precision Drilling |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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