Correlation Between CBAK Energy and Loop Energy
Can any of the company-specific risk be diversified away by investing in both CBAK Energy and Loop Energy 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 CBAK Energy and Loop Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBAK Energy Technology and Loop Energy, you can compare the effects of market volatilities on CBAK Energy and Loop Energy 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 CBAK Energy with a short position of Loop Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBAK Energy and Loop Energy.
Diversification Opportunities for CBAK Energy and Loop Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CBAK and Loop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CBAK Energy Technology and Loop Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Energy and CBAK 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 CBAK Energy Technology are associated (or correlated) with Loop Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Energy has no effect on the direction of CBAK Energy i.e., CBAK Energy and Loop Energy go up and down completely randomly.
Pair Corralation between CBAK Energy and Loop Energy
If you would invest 8.00 in Loop Energy on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Loop Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
CBAK Energy Technology vs. Loop Energy
Performance |
| Timeline |
| CBAK Energy Technology |
| Loop Energy |
CBAK Energy and Loop Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBAK Energy and Loop Energy
The main advantage of trading using opposite CBAK Energy and Loop Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBAK Energy position performs unexpectedly, Loop Energy 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 Loop Energy will offset losses from the drop in Loop Energy's long position.| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
| Loop Energy vs. FREYR Battery SA | Loop Energy vs. nVent Electric PLC | Loop Energy vs. Hubbell | Loop Energy vs. Advanced Energy Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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