Correlation Between Astra Energy and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both Astra 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 Astra 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 Astra Energy and Carnegie Clean Energy, you can compare the effects of market volatilities on Astra 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 Astra Energy with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Energy and Carnegie Clean.
Diversification Opportunities for Astra Energy and Carnegie Clean
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Astra and Carnegie is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Astra Energy 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 Astra 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 Astra Energy 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 Astra Energy i.e., Astra Energy and Carnegie Clean go up and down completely randomly.
Pair Corralation between Astra Energy and Carnegie Clean
Given the investment horizon of 90 days Astra Energy is expected to under-perform the Carnegie Clean. But the otc stock apears to be less risky and, when comparing its historical volatility, Astra Energy is 3.75 times less risky than Carnegie Clean. The otc stock trades about -0.13 of its potential returns per unit of risk. The Carnegie Clean Energy is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1.23 in Carnegie Clean Energy on November 18, 2024 and sell it today you would earn a total of 0.90 from holding Carnegie Clean Energy or generate 73.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra Energy vs. Carnegie Clean Energy
Performance |
| Timeline |
| Astra Energy |
| Carnegie Clean Energy |
Astra Energy and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Energy and Carnegie Clean
The main advantage of trading using opposite Astra Energy and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra 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.| Astra Energy vs. Alternus Energy Group | Astra Energy vs. American Security Resources | Astra Energy vs. Carnegie Clean Energy | Astra Energy vs. Brenmiller Energy Ltd |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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