Correlation Between Atlantic Wind and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both Atlantic Wind 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 Atlantic Wind and Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Wind Solar and Carnegie Clean Energy, you can compare the effects of market volatilities on Atlantic Wind 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 Atlantic Wind with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Wind and Carnegie Clean.
Diversification Opportunities for Atlantic Wind and Carnegie Clean
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atlantic and Carnegie is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Wind Solar 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 Atlantic Wind 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 Atlantic Wind Solar 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 Atlantic Wind i.e., Atlantic Wind and Carnegie Clean go up and down completely randomly.
Pair Corralation between Atlantic Wind and Carnegie Clean
Given the investment horizon of 90 days Atlantic Wind Solar is expected to under-perform the Carnegie Clean. But the pink sheet apears to be less risky and, when comparing its historical volatility, Atlantic Wind Solar is 1.3 times less risky than Carnegie Clean. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Carnegie Clean Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.53 in Carnegie Clean Energy on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Carnegie Clean Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantic Wind Solar vs. Carnegie Clean Energy
Performance |
| Timeline |
| Atlantic Wind Solar |
| Carnegie Clean Energy |
Atlantic Wind and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Wind and Carnegie Clean
The main advantage of trading using opposite Atlantic Wind and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Wind 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.| Atlantic Wind vs. Green Stream Holdings | Atlantic Wind vs. VirExit Technologies | Atlantic Wind vs. Clean Vision Corp | Atlantic Wind vs. SolarWindow Technologies |
| Carnegie Clean vs. Constellation Energy Corp | Carnegie Clean vs. Orsted AS ADR | Carnegie Clean vs. Orsted AS | Carnegie Clean vs. HUMANA INC |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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