Correlation Between Aqua Metals and Northstar Clean
Can any of the company-specific risk be diversified away by investing in both Aqua Metals and Northstar 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 Aqua Metals and Northstar Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqua Metals and Northstar Clean Technologies, you can compare the effects of market volatilities on Aqua Metals and Northstar 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 Aqua Metals with a short position of Northstar Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqua Metals and Northstar Clean.
Diversification Opportunities for Aqua Metals and Northstar Clean
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqua and Northstar is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aqua Metals and Northstar Clean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northstar Clean Tech and Aqua Metals 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 Aqua Metals are associated (or correlated) with Northstar Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northstar Clean Tech has no effect on the direction of Aqua Metals i.e., Aqua Metals and Northstar Clean go up and down completely randomly.
Pair Corralation between Aqua Metals and Northstar Clean
Given the investment horizon of 90 days Aqua Metals is expected to under-perform the Northstar Clean. In addition to that, Aqua Metals is 1.17 times more volatile than Northstar Clean Technologies. It trades about -0.08 of its total potential returns per unit of risk. Northstar Clean Technologies is currently generating about 0.07 per unit of volatility. If you would invest 10.00 in Northstar Clean Technologies on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Northstar Clean Technologies or generate 110.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqua Metals vs. Northstar Clean Technologies
Performance |
| Timeline |
| Aqua Metals |
| Northstar Clean Tech |
Aqua Metals and Northstar Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqua Metals and Northstar Clean
The main advantage of trading using opposite Aqua Metals and Northstar Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqua Metals position performs unexpectedly, Northstar 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 Northstar Clean will offset losses from the drop in Northstar Clean's long position.| Aqua Metals vs. LanzaTech Global | Aqua Metals vs. Waste Management | Aqua Metals vs. Clean Harbors | Aqua Metals vs. Casella Waste Systems |
| Northstar Clean vs. Susglobal Energy Corp | Northstar Clean vs. LanzaTech Global | Northstar Clean vs. Aqua Metals | Northstar Clean vs. LiCycle Holdings Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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