Correlation Between Cleanaway Waste and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste and Alibaba Group 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 Cleanaway Waste and Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and Alibaba Group Holding, you can compare the effects of market volatilities on Cleanaway Waste and Alibaba Group 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 Cleanaway Waste with a short position of Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and Alibaba Group.
Diversification Opportunities for Cleanaway Waste and Alibaba Group
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cleanaway and Alibaba is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding and Cleanaway Waste 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 Cleanaway Waste Management are associated (or correlated) with Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Cleanaway Waste i.e., Cleanaway Waste and Alibaba Group go up and down completely randomly.
Pair Corralation between Cleanaway Waste and Alibaba Group
Assuming the 90 days trading horizon Cleanaway Waste Management is expected to generate 1.1 times more return on investment than Alibaba Group. However, Cleanaway Waste is 1.1 times more volatile than Alibaba Group Holding. It trades about 0.19 of its potential returns per unit of risk. Alibaba Group Holding is currently generating about 0.07 per unit of risk. If you would invest 154.00 in Cleanaway Waste Management on October 25, 2024 and sell it today you would earn a total of 11.00 from holding Cleanaway Waste Management or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Waste Management vs. Alibaba Group Holding
Performance |
| Timeline |
| Cleanaway Waste Mana |
| Alibaba Group Holding |
Cleanaway Waste and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway Waste and Alibaba Group
The main advantage of trading using opposite Cleanaway Waste and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| Cleanaway Waste vs. ARDAGH METAL PACDL 0001 | Cleanaway Waste vs. AMAG Austria Metall | Cleanaway Waste vs. MARKET VECTR RETAIL | Cleanaway Waste vs. Transport International Holdings |
| Alibaba Group vs. Platinum Investment Management | Alibaba Group vs. Gruppo Mutuionline SpA | Alibaba Group vs. United Utilities Group | Alibaba Group vs. Chesapeake Utilities |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |