Correlation Between Plastic Omnium and Chuangs China
Can any of the company-specific risk be diversified away by investing in both Plastic Omnium and Chuangs China 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 Plastic Omnium and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plastic Omnium and Chuangs China Investments, you can compare the effects of market volatilities on Plastic Omnium and Chuangs China 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 Plastic Omnium with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plastic Omnium and Chuangs China.
Diversification Opportunities for Plastic Omnium and Chuangs China
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plastic and Chuangs is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Plastic Omnium and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and Plastic Omnium 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 Plastic Omnium are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of Plastic Omnium i.e., Plastic Omnium and Chuangs China go up and down completely randomly.
Pair Corralation between Plastic Omnium and Chuangs China
If you would invest 944.00 in Plastic Omnium on October 10, 2024 and sell it today you would earn a total of 115.00 from holding Plastic Omnium or generate 12.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Plastic Omnium vs. Chuangs China Investments
Performance |
Timeline |
Plastic Omnium |
Chuangs China Investments |
Plastic Omnium and Chuangs China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Plastic Omnium and Chuangs China
The main advantage of trading using opposite Plastic Omnium and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plastic Omnium position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.Plastic Omnium vs. Easy Software AG | Plastic Omnium vs. FANDIFI TECHNOLOGY P | Plastic Omnium vs. Casio Computer CoLtd | Plastic Omnium vs. Caseys General Stores |
Chuangs China vs. Vishay Intertechnology | Chuangs China vs. United States Steel | Chuangs China vs. NEW MILLENNIUM IRON | Chuangs China vs. SMA Solar Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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