Correlation Between Green World and Chaintech Technology
Can any of the company-specific risk be diversified away by investing in both Green World and Chaintech Technology 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 Green World and Chaintech Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Chaintech Technology Corp, you can compare the effects of market volatilities on Green World and Chaintech Technology 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 Green World with a short position of Chaintech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Chaintech Technology.
Diversification Opportunities for Green World and Chaintech Technology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Green and Chaintech is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Chaintech Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chaintech Technology Corp and Green World 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 Green World Fintech are associated (or correlated) with Chaintech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chaintech Technology Corp has no effect on the direction of Green World i.e., Green World and Chaintech Technology go up and down completely randomly.
Pair Corralation between Green World and Chaintech Technology
Assuming the 90 days trading horizon Green World Fintech is expected to generate 1.43 times more return on investment than Chaintech Technology. However, Green World is 1.43 times more volatile than Chaintech Technology Corp. It trades about -0.15 of its potential returns per unit of risk. Chaintech Technology Corp is currently generating about -0.44 per unit of risk. If you would invest 6,920 in Green World Fintech on September 25, 2024 and sell it today you would lose (530.00) from holding Green World Fintech or give up 7.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Green World Fintech vs. Chaintech Technology Corp
Performance |
Timeline |
Green World Fintech |
Chaintech Technology Corp |
Green World and Chaintech Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Green World and Chaintech Technology
The main advantage of trading using opposite Green World and Chaintech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, Chaintech Technology 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 Chaintech Technology will offset losses from the drop in Chaintech Technology's long position.Green World vs. Digital China Holdings | Green World vs. Acer E Enabling Service | Green World vs. Sysage Technology Co | Green World vs. Wistron Information Technology |
Chaintech Technology vs. Century Wind Power | Chaintech Technology vs. Green World Fintech | Chaintech Technology vs. Ingentec | Chaintech Technology vs. Chaheng Precision Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |