Correlation Between Capital Clean and PACIFIC
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By analyzing existing cross correlation between Capital Clean Energy and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Capital Clean and PACIFIC 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 Capital Clean with a short position of PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and PACIFIC.
Diversification Opportunities for Capital Clean and PACIFIC
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capital and PACIFIC is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC and Capital 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 Capital Clean Energy are associated (or correlated) with PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Capital Clean i.e., Capital Clean and PACIFIC go up and down completely randomly.
Pair Corralation between Capital Clean and PACIFIC
Given the investment horizon of 90 days Capital Clean Energy is expected to generate 0.97 times more return on investment than PACIFIC. However, Capital Clean Energy is 1.03 times less risky than PACIFIC. It trades about 0.04 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.22 per unit of risk. If you would invest 1,840 in Capital Clean Energy on September 15, 2024 and sell it today you would earn a total of 20.00 from holding Capital Clean Energy or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Capital Clean Energy vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Capital Clean Energy |
| PACIFIC GAS ELECTRIC |
Capital Clean and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Clean and PACIFIC
The main advantage of trading using opposite Capital Clean and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| Capital Clean vs. Oceanpal | Capital Clean vs. Safe Bulkers | Capital Clean vs. Safe Bulkers | Capital Clean vs. Safe Bulkers |
| PACIFIC vs. NetSol Technologies | PACIFIC vs. Kaltura | PACIFIC vs. Capital Clean Energy | PACIFIC vs. Cadence Design Systems |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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