Correlation Between CBAK Energy and Trulite
Can any of the company-specific risk be diversified away by investing in both CBAK Energy and Trulite 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 Trulite 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 Trulite, you can compare the effects of market volatilities on CBAK Energy and Trulite 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 Trulite. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBAK Energy and Trulite.
Diversification Opportunities for CBAK Energy and Trulite
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CBAK and Trulite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CBAK Energy Technology and Trulite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trulite 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 Trulite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trulite has no effect on the direction of CBAK Energy i.e., CBAK Energy and Trulite go up and down completely randomly.
Pair Corralation between CBAK Energy and Trulite
Given the investment horizon of 90 days CBAK Energy is expected to generate 44.74 times less return on investment than Trulite. But when comparing it to its historical volatility, CBAK Energy Technology is 9.69 times less risky than Trulite. It trades about 0.01 of its potential returns per unit of risk. Trulite is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Trulite on September 5, 2024 and sell it today you would earn a total of 0.09 from holding Trulite or generate 900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBAK Energy Technology vs. Trulite
Performance |
| Timeline |
| CBAK Energy Technology |
| Trulite |
CBAK Energy and Trulite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBAK Energy and Trulite
The main advantage of trading using opposite CBAK Energy and Trulite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBAK Energy position performs unexpectedly, Trulite 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 Trulite will offset losses from the drop in Trulite's long position.| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
| Trulite vs. Pioneer Power Solutions | Trulite vs. CBAK Energy Technology | Trulite vs. Ocean Power Technologies | Trulite vs. Ideal Power |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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