Correlation Between Wetouch Technology and Curbline Properties

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

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

Diversification Opportunities for Wetouch Technology and Curbline Properties

-0.3

Correlation Coefficient

Wetouch Technology  Curbline Properties

Very good diversification

The 3 months correlation between Wetouch and Curbline is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wetouch Technology Common and Curbline Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curbline Properties Corp and Wetouch Technology 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 Wetouch Technology Common are associated (or correlated) with Curbline Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curbline Properties Corp has no effect on the direction of Wetouch Technology i.e., Wetouch Technology and Curbline Properties go up and down completely randomly.

Pair Corralation between Wetouch Technology and Curbline Properties

Given the investment horizon of 90 days Wetouch Technology is expected to generate 1.95 times less return on investment than Curbline Properties. In addition to that, Wetouch Technology is 2.1 times more volatile than Curbline Properties Corp. It trades about 0.03 of its total potential returns per unit of risk. Curbline Properties Corp is currently generating about 0.12 per unit of volatility. If you would invest  1,985  in Curbline Properties Corp on September 13, 2024 and sell it today you would earn a total of  422.00  from holding Curbline Properties Corp or generate 21.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.3%
Values	Daily Returns

Wetouch Technology Common  vs.  Curbline Properties Corp

Wetouch Technology Common

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wetouch Technology Common are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Wetouch Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Curbline Properties Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Curbline Properties Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Curbline Properties sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wetouch Technology and Curbline Properties

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

The idea behind Wetouch Technology Common and Curbline Properties Corp 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.