Correlation Between FuelCell Energy and CT Global
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and CT Global 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 FuelCell Energy and CT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and CT Global Managed, you can compare the effects of market volatilities on FuelCell Energy and CT Global 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 FuelCell Energy with a short position of CT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and CT Global.
Diversification Opportunities for FuelCell Energy and CT Global
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FuelCell and CMPG is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and CT Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Global Managed and FuelCell Energy 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 FuelCell Energy are associated (or correlated) with CT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Global Managed has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and CT Global go up and down completely randomly.
Pair Corralation between FuelCell Energy and CT Global
Assuming the 90 days trading horizon FuelCell Energy is expected to under-perform the CT Global. In addition to that, FuelCell Energy is 27.61 times more volatile than CT Global Managed. It trades about -0.07 of its total potential returns per unit of risk. CT Global Managed is currently generating about 0.22 per unit of volatility. If you would invest 26,500 in CT Global Managed on October 25, 2024 and sell it today you would earn a total of 300.00 from holding CT Global Managed or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FuelCell Energy vs. CT Global Managed
Performance |
| Timeline |
| FuelCell Energy |
| CT Global Managed |
FuelCell Energy and CT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and CT Global
The main advantage of trading using opposite FuelCell Energy and CT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, CT Global 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 CT Global will offset losses from the drop in CT Global's long position.| FuelCell Energy vs. Taiwan Semiconductor Manufacturing | FuelCell Energy vs. Jupiter Fund Management | FuelCell Energy vs. JB Hunt Transport | FuelCell Energy vs. EJF Investments |
| CT Global vs. Livermore Investments Group | CT Global vs. MoneysupermarketCom Group PLC | CT Global vs. International Consolidated Airlines | CT Global vs. Gear4music Plc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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