Correlation Between China Clean and Sherwin Williams
Can any of the company-specific risk be diversified away by investing in both China Clean and Sherwin Williams 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 Sherwin Williams 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 Sherwin Williams Co, you can compare the effects of market volatilities on China Clean and Sherwin Williams 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 Sherwin Williams. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Sherwin Williams.
Diversification Opportunities for China Clean and Sherwin Williams
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Sherwin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy and Sherwin Williams Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sherwin Williams 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 Sherwin Williams. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sherwin Williams has no effect on the direction of China Clean i.e., China Clean and Sherwin Williams go up and down completely randomly.
Pair Corralation between China Clean and Sherwin Williams
If you would invest 36,017 in Sherwin Williams Co on September 6, 2024 and sell it today you would earn a total of 3,190 from holding Sherwin Williams Co or generate 8.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
China Clean Energy vs. Sherwin Williams Co
Performance |
Timeline |
China Clean Energy |
Sherwin Williams |
China Clean and Sherwin Williams Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Clean and Sherwin Williams
The main advantage of trading using opposite China Clean and Sherwin Williams positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean position performs unexpectedly, Sherwin Williams 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 Sherwin Williams will offset losses from the drop in Sherwin Williams' long position.China Clean vs. Compania Cervecerias Unidas | China Clean vs. Ambev SA ADR | China Clean vs. Mativ Holdings | China Clean vs. Boston Beer |
Sherwin Williams vs. Air Products and | Sherwin Williams vs. Linde plc Ordinary | Sherwin Williams vs. Ecolab Inc | Sherwin Williams vs. RPM International |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |