Correlation Between AAC TECHNOLOGHLDGADR and Clean Energy
Can any of the company-specific risk be diversified away by investing in both AAC TECHNOLOGHLDGADR and Clean Energy 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 AAC TECHNOLOGHLDGADR and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC TECHNOLOGHLDGADR and Clean Energy Fuels, you can compare the effects of market volatilities on AAC TECHNOLOGHLDGADR and Clean Energy 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 AAC TECHNOLOGHLDGADR with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC TECHNOLOGHLDGADR and Clean Energy.
Diversification Opportunities for AAC TECHNOLOGHLDGADR and Clean Energy
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AAC and Clean is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AAC TECHNOLOGHLDGADR and Clean Energy Fuels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Energy Fuels and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR are associated (or correlated) with Clean Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Energy Fuels has no effect on the direction of AAC TECHNOLOGHLDGADR i.e., AAC TECHNOLOGHLDGADR and Clean Energy go up and down completely randomly.
Pair Corralation between AAC TECHNOLOGHLDGADR and Clean Energy
Assuming the 90 days horizon AAC TECHNOLOGHLDGADR is expected to generate 0.84 times more return on investment than Clean Energy. However, AAC TECHNOLOGHLDGADR is 1.2 times less risky than Clean Energy. It trades about 0.15 of its potential returns per unit of risk. Clean Energy Fuels is currently generating about -0.12 per unit of risk. If you would invest 428.00 in AAC TECHNOLOGHLDGADR on December 1, 2024 and sell it today you would earn a total of 147.00 from holding AAC TECHNOLOGHLDGADR or generate 34.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AAC TECHNOLOGHLDGADR vs. Clean Energy Fuels
Performance |
Timeline |
AAC TECHNOLOGHLDGADR |
Clean Energy Fuels |
AAC TECHNOLOGHLDGADR and Clean Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AAC TECHNOLOGHLDGADR and Clean Energy
The main advantage of trading using opposite AAC TECHNOLOGHLDGADR and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC TECHNOLOGHLDGADR position performs unexpectedly, Clean Energy 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 Clean Energy will offset losses from the drop in Clean Energy's long position.AAC TECHNOLOGHLDGADR vs. China Modern Dairy | AAC TECHNOLOGHLDGADR vs. GURU ORGANIC ENERGY | AAC TECHNOLOGHLDGADR vs. GWILLI FOOD | AAC TECHNOLOGHLDGADR vs. EVS Broadcast Equipment |
Clean Energy vs. Hemisphere Energy Corp | Clean Energy vs. UNIVMUSIC GRPADR050 | Clean Energy vs. GigaMedia | Clean Energy vs. Rocket Internet SE |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |