Correlation Between Carnegie Clean and Spirit Telecom
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and Spirit Telecom 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 Spirit Telecom 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 Spirit Telecom, you can compare the effects of market volatilities on Carnegie Clean and Spirit Telecom 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 Spirit Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Spirit Telecom.
Diversification Opportunities for Carnegie Clean and Spirit Telecom
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Carnegie and Spirit is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and Spirit Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirit Telecom 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 Spirit Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirit Telecom has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and Spirit Telecom go up and down completely randomly.
Pair Corralation between Carnegie Clean and Spirit Telecom
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 4.81 times more return on investment than Spirit Telecom. However, Carnegie Clean is 4.81 times more volatile than Spirit Telecom. It trades about 0.09 of its potential returns per unit of risk. Spirit Telecom is currently generating about 0.01 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Spirit Telecom
Performance |
| Timeline |
| Carnegie Clean Energy |
| Spirit Telecom |
Carnegie Clean and Spirit Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Spirit Telecom
The main advantage of trading using opposite Carnegie Clean and Spirit Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, Spirit Telecom 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 Spirit Telecom will offset losses from the drop in Spirit Telecom's long position.| Carnegie Clean vs. Sandon Capital Investments | Carnegie Clean vs. Arc Funds | Carnegie Clean vs. Epsilon Healthcare | Carnegie Clean vs. Clime Investment Management |
| Spirit Telecom vs. WiseTech Global Limited | Spirit Telecom vs. Neurotech International | Spirit Telecom vs. Energy Technologies Limited | Spirit Telecom vs. Hansen 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |