Correlation Between Clean Energy and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Clean Energy and JIAHUA STORES 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 Clean Energy and JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and JIAHUA STORES, you can compare the effects of market volatilities on Clean Energy and JIAHUA STORES 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 Clean Energy with a short position of JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and JIAHUA STORES.
Diversification Opportunities for Clean Energy and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clean and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES and Clean Energy 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 Clean Energy Fuels are associated (or correlated) with JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Clean Energy i.e., Clean Energy and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Clean Energy and JIAHUA STORES
If you would invest 270.00 in Clean Energy Fuels on October 9, 2024 and sell it today you would earn a total of 9.00 from holding Clean Energy Fuels or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Energy Fuels vs. JIAHUA STORES
Performance |
| Timeline |
| Clean Energy Fuels |
| JIAHUA STORES |
Clean Energy and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and JIAHUA STORES
The main advantage of trading using opposite Clean Energy and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Clean Energy vs. NESTE OYJ UNSPADR | Clean Energy vs. Superior Plus Corp | Clean Energy vs. NMI Holdings | Clean Energy vs. SIVERS SEMICONDUCTORS AB |
| JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc | JIAHUA STORES vs. Apple Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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