Correlation Between China BlueChemical and GLADSTONE LAND
Can any of the company-specific risk be diversified away by investing in both China BlueChemical and GLADSTONE LAND 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 BlueChemical and GLADSTONE LAND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China BlueChemical and GLADSTONE LAND L 001, you can compare the effects of market volatilities on China BlueChemical and GLADSTONE LAND 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 BlueChemical with a short position of GLADSTONE LAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of China BlueChemical and GLADSTONE LAND.
Diversification Opportunities for China BlueChemical and GLADSTONE LAND
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and GLADSTONE is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding China BlueChemical and GLADSTONE LAND L 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLADSTONE LAND L and China BlueChemical 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 BlueChemical are associated (or correlated) with GLADSTONE LAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLADSTONE LAND L has no effect on the direction of China BlueChemical i.e., China BlueChemical and GLADSTONE LAND go up and down completely randomly.
Pair Corralation between China BlueChemical and GLADSTONE LAND
Assuming the 90 days horizon China BlueChemical is expected to generate 2.45 times more return on investment than GLADSTONE LAND. However, China BlueChemical is 2.45 times more volatile than GLADSTONE LAND L 001. It trades about 0.06 of its potential returns per unit of risk. GLADSTONE LAND L 001 is currently generating about -0.21 per unit of risk. If you would invest 22.00 in China BlueChemical on September 26, 2024 and sell it today you would earn a total of 2.00 from holding China BlueChemical or generate 9.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
China BlueChemical vs. GLADSTONE LAND L 001
Performance |
Timeline |
China BlueChemical |
GLADSTONE LAND L |
China BlueChemical and GLADSTONE LAND Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China BlueChemical and GLADSTONE LAND
The main advantage of trading using opposite China BlueChemical and GLADSTONE LAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China BlueChemical position performs unexpectedly, GLADSTONE LAND 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 GLADSTONE LAND will offset losses from the drop in GLADSTONE LAND's long position.China BlueChemical vs. Micron Technology | China BlueChemical vs. SCOTT TECHNOLOGY | China BlueChemical vs. Vishay Intertechnology | China BlueChemical vs. Carsales |
GLADSTONE LAND vs. Extra Space Storage | GLADSTONE LAND vs. First Industrial Realty | GLADSTONE LAND vs. Warehouses De Pauw | GLADSTONE LAND vs. National Storage Affiliates |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |