Correlation Between CBAK Energy and Tecogen
Can any of the company-specific risk be diversified away by investing in both CBAK Energy and Tecogen 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 Tecogen 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 Tecogen, you can compare the effects of market volatilities on CBAK Energy and Tecogen 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 Tecogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBAK Energy and Tecogen.
Diversification Opportunities for CBAK Energy and Tecogen
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between CBAK and Tecogen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CBAK Energy Technology and Tecogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecogen 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 Tecogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecogen has no effect on the direction of CBAK Energy i.e., CBAK Energy and Tecogen go up and down completely randomly.
Pair Corralation between CBAK Energy and Tecogen
If you would invest 107.00 in Tecogen on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Tecogen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
CBAK Energy Technology vs. Tecogen
Performance |
| Timeline |
| CBAK Energy Technology |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CBAK Energy and Tecogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBAK Energy and Tecogen
The main advantage of trading using opposite CBAK Energy and Tecogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBAK Energy position performs unexpectedly, Tecogen 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 Tecogen will offset losses from the drop in Tecogen's long position.| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |