Correlation Between Carnegie Clean and FireFly Metals
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and FireFly Metals 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 Carnegie Clean and FireFly Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and FireFly Metals, you can compare the effects of market volatilities on Carnegie Clean and FireFly Metals 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 Carnegie Clean with a short position of FireFly Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and FireFly Metals.
Diversification Opportunities for Carnegie Clean and FireFly Metals
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carnegie and FireFly is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and FireFly Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FireFly Metals and Carnegie Clean 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 Carnegie Clean Energy are associated (or correlated) with FireFly Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FireFly Metals has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and FireFly Metals go up and down completely randomly.
Pair Corralation between Carnegie Clean and FireFly Metals
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to under-perform the FireFly Metals. In addition to that, Carnegie Clean is 1.91 times more volatile than FireFly Metals. It trades about -0.04 of its total potential returns per unit of risk. FireFly Metals is currently generating about 0.14 per unit of volatility. If you would invest 91.00 in FireFly Metals on October 25, 2024 and sell it today you would earn a total of 6.00 from holding FireFly Metals or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. FireFly Metals
Performance |
| Timeline |
| Carnegie Clean Energy |
| FireFly Metals |
Carnegie Clean and FireFly Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and FireFly Metals
The main advantage of trading using opposite Carnegie Clean and FireFly Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, FireFly Metals 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 FireFly Metals will offset losses from the drop in FireFly Metals' long position.| Carnegie Clean vs. ACDC Metals | Carnegie Clean vs. Cosmo Metals | Carnegie Clean vs. Aeon Metals | Carnegie Clean vs. Falcon Metals |
| FireFly Metals vs. Torque Metals | FireFly Metals vs. Insurance Australia Group | FireFly Metals vs. Spirit Telecom | FireFly Metals vs. Iron Road |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |