Correlation Between FDG Electric and Northstar Clean
Can any of the company-specific risk be diversified away by investing in both FDG Electric 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 FDG Electric and Northstar Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and Northstar Clean Technologies, you can compare the effects of market volatilities on FDG Electric 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 FDG Electric with a short position of Northstar Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Northstar Clean.
Diversification Opportunities for FDG Electric and Northstar Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Northstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles 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 FDG Electric 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 FDG Electric Vehicles 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 FDG Electric i.e., FDG Electric and Northstar Clean go up and down completely randomly.
Pair Corralation between FDG Electric and Northstar Clean
If you would invest 18.00 in Northstar Clean Technologies on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Northstar Clean Technologies or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Northstar Clean Technologies
Performance |
| Timeline |
| FDG Electric Vehicles |
| Northstar Clean Tech |
FDG Electric and Northstar Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Northstar Clean
The main advantage of trading using opposite FDG Electric and Northstar Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric 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.| FDG Electric vs. Allison Transmission Holdings | FDG Electric vs. Luminar Technologies | FDG Electric vs. Lear Corporation | FDG Electric vs. BorgWarner |
| Northstar Clean vs. Republic Services | Northstar Clean vs. Waste Connections | Northstar Clean vs. Clean Harbors | Northstar Clean vs. Gfl Environmental Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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