Correlation Between Carnegie Clean and Lykos Metals
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and Lykos 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 Lykos 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 Lykos Metals, you can compare the effects of market volatilities on Carnegie Clean and Lykos 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 Lykos Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Lykos Metals.
Diversification Opportunities for Carnegie Clean and Lykos Metals
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carnegie and Lykos is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and Lykos Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lykos 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 Lykos Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lykos Metals has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and Lykos Metals go up and down completely randomly.
Pair Corralation between Carnegie Clean and Lykos Metals
If you would invest 3.70 in Carnegie Clean Energy on November 9, 2024 and sell it today you would earn a total of 0.40 from holding Carnegie Clean Energy or generate 10.81% 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. Lykos Metals
Performance |
| Timeline |
| Carnegie Clean Energy |
| Lykos Metals |
Carnegie Clean and Lykos Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Lykos Metals
The main advantage of trading using opposite Carnegie Clean and Lykos Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, Lykos 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 Lykos Metals will offset losses from the drop in Lykos Metals' long position.| Carnegie Clean vs. Sandon Capital Investments | Carnegie Clean vs. Arc Funds | Carnegie Clean vs. Epsilon Healthcare | Carnegie Clean vs. Clime Investment Management |
| Lykos Metals vs. Evolution Mining | Lykos Metals vs. Bluescope Steel | Lykos Metals vs. Perseus Mining | Lykos Metals vs. Champion Iron |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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