Correlation Between Clear Blue and SinglePoint
Can any of the company-specific risk be diversified away by investing in both Clear Blue and SinglePoint 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 Clear Blue and SinglePoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Blue Technologies and SinglePoint, you can compare the effects of market volatilities on Clear Blue and SinglePoint 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 Clear Blue with a short position of SinglePoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Blue and SinglePoint.
Diversification Opportunities for Clear Blue and SinglePoint
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clear and SinglePoint is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Clear Blue Technologies and SinglePoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinglePoint and Clear Blue 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 Clear Blue Technologies are associated (or correlated) with SinglePoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinglePoint has no effect on the direction of Clear Blue i.e., Clear Blue and SinglePoint go up and down completely randomly.
Pair Corralation between Clear Blue and SinglePoint
Assuming the 90 days horizon Clear Blue Technologies is expected to generate 0.51 times more return on investment than SinglePoint. However, Clear Blue Technologies is 1.96 times less risky than SinglePoint. It trades about 0.02 of its potential returns per unit of risk. SinglePoint is currently generating about -0.11 per unit of risk. If you would invest 4.08 in Clear Blue Technologies on September 1, 2024 and sell it today you would lose (2.58) from holding Clear Blue Technologies or give up 63.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Clear Blue Technologies vs. SinglePoint
Performance |
| Timeline |
| Clear Blue Technologies |
| SinglePoint |
Clear Blue and SinglePoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Blue and SinglePoint
The main advantage of trading using opposite Clear Blue and SinglePoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Blue position performs unexpectedly, SinglePoint 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 SinglePoint will offset losses from the drop in SinglePoint's long position.| Clear Blue vs. MabCure | Clear Blue vs. GCL Poly Energy Holdings | Clear Blue vs. Solar Alliance Energy | Clear Blue vs. SinglePoint |
| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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