Correlation Between Ballard Power and Northstar Clean
Can any of the company-specific risk be diversified away by investing in both Ballard Power 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 Ballard Power and Northstar Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballard Power Systems and Northstar Clean Technologies, you can compare the effects of market volatilities on Ballard Power 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 Ballard Power with a short position of Northstar Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballard Power and Northstar Clean.
Diversification Opportunities for Ballard Power and Northstar Clean
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ballard and Northstar is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ballard Power Systems 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 Ballard Power 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 Ballard Power Systems 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 Ballard Power i.e., Ballard Power and Northstar Clean go up and down completely randomly.
Pair Corralation between Ballard Power and Northstar Clean
Assuming the 90 days trading horizon Ballard Power Systems is expected to under-perform the Northstar Clean. But the stock apears to be less risky and, when comparing its historical volatility, Ballard Power Systems is 1.39 times less risky than Northstar Clean. The stock trades about -0.1 of its potential returns per unit of risk. The Northstar Clean Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Northstar Clean Technologies on August 25, 2024 and sell it today you would earn a total of 15.00 from holding Northstar Clean Technologies or generate 115.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ballard Power Systems vs. Northstar Clean Technologies
Performance |
| Timeline |
| Ballard Power Systems |
| Northstar Clean Tech |
Ballard Power and Northstar Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ballard Power and Northstar Clean
The main advantage of trading using opposite Ballard Power and Northstar Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballard Power 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.| Ballard Power vs. Northstar Clean Technologies | Ballard Power vs. TGS Esports | Ballard Power vs. Boat Rocker Media | Ballard Power vs. iSign Media Solutions |
| Northstar Clean vs. Environmental Waste International | Northstar Clean vs. BluMetric Environmental | Northstar Clean vs. Eguana Technologies | Northstar Clean vs. Thermal Energy International |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |