Correlation Between China XD and Cooper Tire
Can any of the company-specific risk be diversified away by investing in both China XD and Cooper Tire 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 XD and Cooper Tire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China XD Plastics and Cooper Tire Rubber, you can compare the effects of market volatilities on China XD and Cooper Tire 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 XD with a short position of Cooper Tire. Check out your portfolio center. Please also check ongoing floating volatility patterns of China XD and Cooper Tire.
Diversification Opportunities for China XD and Cooper Tire
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Cooper is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China XD Plastics and Cooper Tire Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Tire Rubber and China XD 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 XD Plastics are associated (or correlated) with Cooper Tire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Tire Rubber has no effect on the direction of China XD i.e., China XD and Cooper Tire go up and down completely randomly.
Pair Corralation between China XD and Cooper Tire
If you would invest (100.00) in Cooper Tire Rubber on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Cooper Tire Rubber or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China XD Plastics vs. Cooper Tire Rubber
Performance |
| Timeline |
| China XD Plastics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cooper Tire Rubber |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China XD and Cooper Tire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China XD and Cooper Tire
The main advantage of trading using opposite China XD and Cooper Tire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China XD position performs unexpectedly, Cooper Tire 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 Cooper Tire will offset losses from the drop in Cooper Tire's long position.| China XD vs. Encore Wire | China XD vs. Worthington Steel | China XD vs. Bm Technologies | China XD vs. Where Food Comes |
| Cooper Tire vs. Ecolab Inc | Cooper Tire vs. Hawkins | Cooper Tire vs. NL Industries | Cooper Tire vs. CF Industries Holdings |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |