Correlation Between UmweltBank and Chengdu PUTIAN
Can any of the company-specific risk be diversified away by investing in both UmweltBank and Chengdu PUTIAN 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 UmweltBank and Chengdu PUTIAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UmweltBank AG and Chengdu PUTIAN Telecommunications, you can compare the effects of market volatilities on UmweltBank and Chengdu PUTIAN 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 UmweltBank with a short position of Chengdu PUTIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of UmweltBank and Chengdu PUTIAN.
Diversification Opportunities for UmweltBank and Chengdu PUTIAN
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UmweltBank and Chengdu is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding UmweltBank AG and Chengdu PUTIAN Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu PUTIAN Telec and UmweltBank 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 UmweltBank AG are associated (or correlated) with Chengdu PUTIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu PUTIAN Telec has no effect on the direction of UmweltBank i.e., UmweltBank and Chengdu PUTIAN go up and down completely randomly.
Pair Corralation between UmweltBank and Chengdu PUTIAN
Assuming the 90 days trading horizon UmweltBank AG is expected to under-perform the Chengdu PUTIAN. But the stock apears to be less risky and, when comparing its historical volatility, UmweltBank AG is 3.47 times less risky than Chengdu PUTIAN. The stock trades about -0.01 of its potential returns per unit of risk. The Chengdu PUTIAN Telecommunications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9.35 in Chengdu PUTIAN Telecommunications on November 5, 2024 and sell it today you would lose (1.50) from holding Chengdu PUTIAN Telecommunications or give up 16.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UmweltBank AG vs. Chengdu PUTIAN Telecommunicati
Performance |
| Timeline |
| UmweltBank AG |
| Chengdu PUTIAN Telec |
UmweltBank and Chengdu PUTIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UmweltBank and Chengdu PUTIAN
The main advantage of trading using opposite UmweltBank and Chengdu PUTIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UmweltBank position performs unexpectedly, Chengdu PUTIAN 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 Chengdu PUTIAN will offset losses from the drop in Chengdu PUTIAN's long position.| UmweltBank vs. SIVERS SEMICONDUCTORS AB | UmweltBank vs. NorAm Drilling AS | UmweltBank vs. Volkswagen AG | UmweltBank vs. Darden Restaurants |
| Chengdu PUTIAN vs. UNIVERSAL DISPLAY | Chengdu PUTIAN vs. CSSC Offshore Marine | Chengdu PUTIAN vs. ANTA SPORTS PRODUCT | Chengdu PUTIAN vs. Columbia Sportswear |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |