Correlation Between China Clean and 360 Finance
Can any of the company-specific risk be diversified away by investing in both China Clean and 360 Finance 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 360 Finance 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 360 Finance, you can compare the effects of market volatilities on China Clean and 360 Finance 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 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and 360 Finance.
Diversification Opportunities for China Clean and 360 Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and 360 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance 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 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of China Clean i.e., China Clean and 360 Finance go up and down completely randomly.
Pair Corralation between China Clean and 360 Finance
If you would invest 3,364 in 360 Finance on October 6, 2024 and sell it today you would earn a total of 503.00 from holding 360 Finance or generate 14.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.35% |
Values | Daily Returns |
China Clean Energy vs. 360 Finance
Performance |
Timeline |
China Clean Energy |
360 Finance |
China Clean and 360 Finance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Clean and 360 Finance
The main advantage of trading using opposite China Clean and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.China Clean vs. Lendlease Global Commercial | China Clean vs. Barrick Gold Corp | China Clean vs. AerCap Holdings NV | China Clean vs. FTAI Aviation Ltd |
360 Finance vs. The Joint Corp | 360 Finance vs. LENSAR Inc | 360 Finance vs. First Watch Restaurant | 360 Finance vs. Dennys Corp |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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