Correlation Between Aemetis and Clean Energy
Can any of the company-specific risk be diversified away by investing in both Aemetis 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 Aemetis and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aemetis and Clean Energy Fuels, you can compare the effects of market volatilities on Aemetis 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 Aemetis with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aemetis and Clean Energy.
Diversification Opportunities for Aemetis and Clean Energy
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aemetis and Clean is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aemetis 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 Aemetis 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 Aemetis 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 Aemetis i.e., Aemetis and Clean Energy go up and down completely randomly.
Pair Corralation between Aemetis and Clean Energy
Given the investment horizon of 90 days Aemetis is expected to generate 1.71 times more return on investment than Clean Energy. However, Aemetis is 1.71 times more volatile than Clean Energy Fuels. It trades about 0.03 of its potential returns per unit of risk. Clean Energy Fuels is currently generating about -0.01 per unit of risk. If you would invest 435.00 in Aemetis on August 31, 2024 and sell it today you would lose (39.00) from holding Aemetis or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aemetis vs. Clean Energy Fuels
Performance |
| Timeline |
| Aemetis |
| Clean Energy Fuels |
Aemetis and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aemetis and Clean Energy
The main advantage of trading using opposite Aemetis and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aemetis 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.| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. CVR Energy |
| Clean Energy vs. Star Gas Partners | Clean Energy vs. Par Pacific Holdings | Clean Energy vs. Delek Energy | Clean Energy vs. Crossamerica Partners LP |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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