Correlation Between Grupo Carso and Clean Energy
Can any of the company-specific risk be diversified away by investing in both Grupo Carso 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 Grupo Carso and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and Clean Energy Fuels, you can compare the effects of market volatilities on Grupo Carso 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 Grupo Carso with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Clean Energy.
Diversification Opportunities for Grupo Carso and Clean Energy
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and Clean is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB 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 Grupo Carso 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 Grupo Carso SAB 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 Grupo Carso i.e., Grupo Carso and Clean Energy go up and down completely randomly.
Pair Corralation between Grupo Carso and Clean Energy
Assuming the 90 days horizon Grupo Carso SAB is expected to under-perform the Clean Energy. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Carso SAB is 2.63 times less risky than Clean Energy. The stock trades about -0.11 of its potential returns per unit of risk. The Clean Energy Fuels is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 265.00 in Clean Energy Fuels on October 13, 2024 and sell it today you would earn a total of 16.00 from holding Clean Energy Fuels or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. Clean Energy Fuels
Performance |
| Timeline |
| Grupo Carso SAB |
| Clean Energy Fuels |
Grupo Carso and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Clean Energy
The main advantage of trading using opposite Grupo Carso and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso 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.| Grupo Carso vs. Focus Home Interactive | Grupo Carso vs. 24SEVENOFFICE GROUP AB | Grupo Carso vs. GREENX METALS LTD | Grupo Carso vs. Haier Smart Home |
| Clean Energy vs. BOS BETTER ONLINE | Clean Energy vs. ANGLO ASIAN MINING | Clean Energy vs. CSSC Offshore Marine | Clean Energy vs. CarsalesCom |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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