Correlation Between China Clean and Acm Research

Can any of the company-specific risk be diversified away by investing in both China Clean and Acm Research 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 China Clean and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between China Clean Energy and Acm Research, you can compare the effects of market volatilities on China Clean and Acm Research 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 China Clean with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Acm Research.

Diversification Opportunities for China Clean and Acm Research

0.0

Correlation Coefficient

China Clean  Acm Research

Pay attention - limited upside

The 3 months correlation between China and Acm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and China Clean 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 China Clean Energy are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of China Clean i.e., China Clean and Acm Research go up and down completely randomly.

Pair Corralation between China Clean and Acm Research

If you would invest  1,862  in Acm Research on September 26, 2024 and sell it today you would lose (333.00) from holding Acm Research or give up 17.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.68%
Values	Daily Returns

China Clean Energy  vs.  Acm Research

China Clean Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days China Clean Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, China Clean is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Acm Research

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with China Clean and Acm Research

The main advantage of trading using opposite China Clean and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.

The idea behind China Clean Energy and Acm Research pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.