Correlation Between SANOK RUBBER and Clean Energy
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and Clean Energy 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 SANOK RUBBER and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and Clean Energy Fuels, you can compare the effects of market volatilities on SANOK RUBBER and Clean Energy 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 SANOK RUBBER with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Clean Energy.
Diversification Opportunities for SANOK RUBBER and Clean Energy
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between SANOK and Clean is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and Clean Energy Fuels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Energy Fuels and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with Clean Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Energy Fuels has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and Clean Energy go up and down completely randomly.
Pair Corralation between SANOK RUBBER and Clean Energy
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 0.24 times more return on investment than Clean Energy. However, SANOK RUBBER ZY is 4.2 times less risky than Clean Energy. It trades about 0.27 of its potential returns per unit of risk. Clean Energy Fuels is currently generating about -0.06 per unit of risk. If you would invest 434.00 in SANOK RUBBER ZY on September 25, 2024 and sell it today you would earn a total of 21.00 from holding SANOK RUBBER ZY or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. Clean Energy Fuels
Performance |
| Timeline |
| SANOK RUBBER ZY |
| Clean Energy Fuels |
SANOK RUBBER and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and Clean Energy
The main advantage of trading using opposite SANOK RUBBER and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, Clean Energy 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 Clean Energy will offset losses from the drop in Clean Energy's long position.| SANOK RUBBER vs. Dno ASA | SANOK RUBBER vs. DENSO P ADR | SANOK RUBBER vs. Aptiv PLC | SANOK RUBBER vs. PT Astra International |
| Clean Energy vs. SCANSOURCE | Clean Energy vs. United Breweries Co | Clean Energy vs. The Boston Beer | Clean Energy vs. TRADEDOUBLER AB SK |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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