Correlation Between Curbline Properties and Wetouch Technology

Can any of the company-specific risk be diversified away by investing in both Curbline Properties and Wetouch 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 Curbline Properties and Wetouch Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Curbline Properties Corp and Wetouch Technology Common, you can compare the effects of market volatilities on Curbline Properties and Wetouch 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 Curbline Properties with a short position of Wetouch Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curbline Properties and Wetouch Technology.

Diversification Opportunities for Curbline Properties and Wetouch Technology

-0.49

Correlation Coefficient

Curbline Properties  Wetouch Technology

Very good diversification

The 3 months correlation between Curbline and Wetouch is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Curbline Properties Corp and Wetouch Technology Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wetouch Technology Common and Curbline Properties 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 Curbline Properties Corp are associated (or correlated) with Wetouch Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wetouch Technology Common has no effect on the direction of Curbline Properties i.e., Curbline Properties and Wetouch Technology go up and down completely randomly.

Pair Corralation between Curbline Properties and Wetouch Technology

Given the investment horizon of 90 days Curbline Properties Corp is expected to generate 0.31 times more return on investment than Wetouch Technology. However, Curbline Properties Corp is 3.2 times less risky than Wetouch Technology. It trades about 0.04 of its potential returns per unit of risk. Wetouch Technology Common is currently generating about -0.02 per unit of risk. If you would invest  2,400  in Curbline Properties Corp on November 29, 2024 and sell it today you would earn a total of  68.00  from holding Curbline Properties Corp or generate 2.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Curbline Properties Corp  vs.  Wetouch Technology Common

Curbline Properties Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Curbline Properties Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Curbline Properties is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Wetouch Technology Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wetouch Technology Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Wetouch Technology is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Curbline Properties and Wetouch Technology

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

The idea behind Curbline Properties Corp and Wetouch Technology Common 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.