Correlation Between Clean Carbon and E Xim
Can any of the company-specific risk be diversified away by investing in both Clean Carbon and E Xim 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 Clean Carbon and E Xim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Carbon Energy and E Xim IT, you can compare the effects of market volatilities on Clean Carbon and E Xim 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 Clean Carbon with a short position of E Xim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Carbon and E Xim.
Diversification Opportunities for Clean Carbon and E Xim
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clean and EXM is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Clean Carbon Energy and E Xim IT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Xim IT and Clean Carbon 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 Clean Carbon Energy are associated (or correlated) with E Xim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Xim IT has no effect on the direction of Clean Carbon i.e., Clean Carbon and E Xim go up and down completely randomly.
Pair Corralation between Clean Carbon and E Xim
Assuming the 90 days trading horizon Clean Carbon is expected to generate 51.32 times less return on investment than E Xim. But when comparing it to its historical volatility, Clean Carbon Energy is 2.27 times less risky than E Xim. It trades about 0.01 of its potential returns per unit of risk. E Xim IT is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,820 in E Xim IT on August 30, 2024 and sell it today you would earn a total of 12,680 from holding E Xim IT or generate 331.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 36.51% |
| Values | Daily Returns |
Clean Carbon Energy vs. E Xim IT
Performance |
| Timeline |
| Clean Carbon Energy |
| E Xim IT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Clean Carbon and E Xim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Carbon and E Xim
The main advantage of trading using opposite Clean Carbon and E Xim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Carbon position performs unexpectedly, E Xim 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 E Xim will offset losses from the drop in E Xim's long position.| Clean Carbon vs. Asseco Business Solutions | Clean Carbon vs. Detalion Games SA | Clean Carbon vs. CFI Holding SA | Clean Carbon vs. HM Inwest SA |
| E Xim vs. Varsav Game Studios | E Xim vs. Gamedust SA | E Xim vs. Ultimate Games SA | E Xim vs. Inter Cars SA |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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