Correlation Between Green World and Coxon Precise
Can any of the company-specific risk be diversified away by investing in both Green World and Coxon Precise 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 Green World and Coxon Precise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Coxon Precise Industrial, you can compare the effects of market volatilities on Green World and Coxon Precise 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 Green World with a short position of Coxon Precise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Coxon Precise.
Diversification Opportunities for Green World and Coxon Precise
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Green and Coxon is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Coxon Precise Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coxon Precise Industrial and Green World 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 Green World Fintech are associated (or correlated) with Coxon Precise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coxon Precise Industrial has no effect on the direction of Green World i.e., Green World and Coxon Precise go up and down completely randomly.
Pair Corralation between Green World and Coxon Precise
Assuming the 90 days trading horizon Green World Fintech is expected to generate 1.27 times more return on investment than Coxon Precise. However, Green World is 1.27 times more volatile than Coxon Precise Industrial. It trades about 0.08 of its potential returns per unit of risk. Coxon Precise Industrial is currently generating about 0.02 per unit of risk. If you would invest 3,018 in Green World Fintech on September 23, 2024 and sell it today you would earn a total of 3,182 from holding Green World Fintech or generate 105.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.71% |
Values | Daily Returns |
Green World Fintech vs. Coxon Precise Industrial
Performance |
Timeline |
Green World Fintech |
Coxon Precise Industrial |
Green World and Coxon Precise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Green World and Coxon Precise
The main advantage of trading using opposite Green World and Coxon Precise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, Coxon Precise 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 Coxon Precise will offset losses from the drop in Coxon Precise's long position.Green World vs. Digital China Holdings | Green World vs. Acer E Enabling Service | Green World vs. Sysage Technology Co | Green World vs. Wistron Information Technology |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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