Correlation Between Credit Clear and Ambertech
Can any of the company-specific risk be diversified away by investing in both Credit Clear and Ambertech 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 Credit Clear and Ambertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Clear and Ambertech, you can compare the effects of market volatilities on Credit Clear and Ambertech 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 Credit Clear with a short position of Ambertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Clear and Ambertech.
Diversification Opportunities for Credit Clear and Ambertech
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Credit and Ambertech is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Credit Clear and Ambertech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambertech and Credit Clear 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 Credit Clear are associated (or correlated) with Ambertech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambertech has no effect on the direction of Credit Clear i.e., Credit Clear and Ambertech go up and down completely randomly.
Pair Corralation between Credit Clear and Ambertech
Assuming the 90 days trading horizon Credit Clear is expected to generate 1.04 times more return on investment than Ambertech. However, Credit Clear is 1.04 times more volatile than Ambertech. It trades about 0.02 of its potential returns per unit of risk. Ambertech is currently generating about -0.01 per unit of risk. If you would invest 36.00 in Credit Clear on November 1, 2024 and sell it today you would lose (3.00) from holding Credit Clear or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Clear vs. Ambertech
Performance |
| Timeline |
| Credit Clear |
| Ambertech |
Credit Clear and Ambertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Clear and Ambertech
The main advantage of trading using opposite Credit Clear and Ambertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Clear position performs unexpectedly, Ambertech 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 Ambertech will offset losses from the drop in Ambertech's long position.| Credit Clear vs. Homeco Daily Needs | Credit Clear vs. Charter Hall Education | Credit Clear vs. Argo Investments | Credit Clear vs. A1 Investments Resources |
| Ambertech vs. Aeon Metals | Ambertech vs. Change Financial Limited | Ambertech vs. Credit Clear | Ambertech vs. Stelar Metals |
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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