Correlation Between Stagwell and China Clean
Can any of the company-specific risk be diversified away by investing in both Stagwell 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 Stagwell and China Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stagwell and China Clean Energy, you can compare the effects of market volatilities on Stagwell 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 Stagwell with a short position of China Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and China Clean.
Diversification Opportunities for Stagwell and China Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stagwell and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell 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 Stagwell 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 Stagwell 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 Stagwell i.e., Stagwell and China Clean go up and down completely randomly.
Pair Corralation between Stagwell and China Clean
If you would invest 645.00 in Stagwell on August 31, 2024 and sell it today you would earn a total of 146.00 from holding Stagwell or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stagwell vs. China Clean Energy
Performance |
| Timeline |
| Stagwell |
| China Clean Energy |
Stagwell and China Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and China Clean
The main advantage of trading using opposite Stagwell and China Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell 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.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
| China Clean vs. Sherwin Williams Co | China Clean vs. Air Liquide SA | China Clean vs. LAir Liquide SA | China Clean vs. Air Products and |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |