Correlation Between BROADWIND ENRGY and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both BROADWIND ENRGY and Carnegie Clean 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 BROADWIND ENRGY and Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADWIND ENRGY and Carnegie Clean Energy, you can compare the effects of market volatilities on BROADWIND ENRGY and Carnegie Clean 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 BROADWIND ENRGY with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADWIND ENRGY and Carnegie Clean.
Diversification Opportunities for BROADWIND ENRGY and Carnegie Clean
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BROADWIND and Carnegie is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding BROADWIND ENRGY and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy and BROADWIND ENRGY 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 BROADWIND ENRGY are associated (or correlated) with Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of BROADWIND ENRGY i.e., BROADWIND ENRGY and Carnegie Clean go up and down completely randomly.
Pair Corralation between BROADWIND ENRGY and Carnegie Clean
Assuming the 90 days trading horizon BROADWIND ENRGY is expected to generate 1.25 times more return on investment than Carnegie Clean. However, BROADWIND ENRGY is 1.25 times more volatile than Carnegie Clean Energy. It trades about 0.13 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about 0.01 per unit of risk. If you would invest 168.00 in BROADWIND ENRGY on October 12, 2024 and sell it today you would earn a total of 13.00 from holding BROADWIND ENRGY or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BROADWIND ENRGY vs. Carnegie Clean Energy
Performance |
| Timeline |
| BROADWIND ENRGY |
| Carnegie Clean Energy |
BROADWIND ENRGY and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADWIND ENRGY and Carnegie Clean
The main advantage of trading using opposite BROADWIND ENRGY and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADWIND ENRGY position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| BROADWIND ENRGY vs. Nok Airlines PCL | BROADWIND ENRGY vs. InterContinental Hotels Group | BROADWIND ENRGY vs. Singapore Airlines Limited | BROADWIND ENRGY vs. Xenia Hotels Resorts |
| Carnegie Clean vs. AGF Management Limited | Carnegie Clean vs. Cleanaway Waste Management | Carnegie Clean vs. JD SPORTS FASH | Carnegie Clean vs. Air Transport Services |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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