Correlation Between Alternus Energy and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both Alternus Energy 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 Alternus Energy and Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alternus Energy Group and Carnegie Clean Energy, you can compare the effects of market volatilities on Alternus Energy 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 Alternus Energy with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternus Energy and Carnegie Clean.
Diversification Opportunities for Alternus Energy and Carnegie Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alternus and Carnegie is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alternus Energy Group 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 Alternus 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 Alternus Energy Group 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 Alternus Energy i.e., Alternus Energy and Carnegie Clean go up and down completely randomly.
Pair Corralation between Alternus Energy and Carnegie Clean
Assuming the 90 days horizon Alternus Energy is expected to generate 4.29 times less return on investment than Carnegie Clean. But when comparing it to its historical volatility, Alternus Energy Group is 2.02 times less risky than Carnegie Clean. It trades about 0.04 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5.50 in Carnegie Clean Energy on October 24, 2024 and sell it today you would lose (3.06) from holding Carnegie Clean Energy or give up 55.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.57% |
| Values | Daily Returns |
Alternus Energy Group vs. Carnegie Clean Energy
Performance |
| Timeline |
| Alternus Energy Group |
| Carnegie Clean Energy |
Alternus Energy and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternus Energy and Carnegie Clean
The main advantage of trading using opposite Alternus Energy and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternus Energy 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.| Alternus Energy vs. Denison Mines Corp | Alternus Energy vs. Coty Inc | Alternus Energy vs. Inflection Point Acquisition | Alternus Energy vs. Lion One Metals |
| Carnegie Clean vs. Astra Energy | Carnegie Clean vs. Brenmiller Energy Ltd | Carnegie Clean vs. Clean Vision Corp | Carnegie Clean vs. Alternus Energy Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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