Correlation Between Carnegie Clean and Flagship Investments
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and Flagship Investments 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 Flagship Investments 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 Flagship Investments, you can compare the effects of market volatilities on Carnegie Clean and Flagship Investments 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 Flagship Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Flagship Investments.
Diversification Opportunities for Carnegie Clean and Flagship Investments
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and Flagship is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and Flagship Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagship Investments 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 Flagship Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagship Investments has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and Flagship Investments go up and down completely randomly.
Pair Corralation between Carnegie Clean and Flagship Investments
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 15.82 times more return on investment than Flagship Investments. However, Carnegie Clean is 15.82 times more volatile than Flagship Investments. It trades about 0.09 of its potential returns per unit of risk. Flagship Investments is currently generating about 0.03 per unit of risk. If you would invest 7.50 in Carnegie Clean Energy on November 9, 2024 and sell it today you would lose (3.40) from holding Carnegie Clean Energy or give up 45.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Flagship Investments
Performance |
| Timeline |
| Carnegie Clean Energy |
| Flagship Investments |
Carnegie Clean and Flagship Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Flagship Investments
The main advantage of trading using opposite Carnegie Clean and Flagship Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, Flagship Investments 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 Flagship Investments will offset losses from the drop in Flagship Investments' long position.| Carnegie Clean vs. Sandon Capital Investments | Carnegie Clean vs. Arc Funds | Carnegie Clean vs. Epsilon Healthcare | Carnegie Clean vs. Clime Investment Management |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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