Correlation Between CGE Energy and Green Stream
Can any of the company-specific risk be diversified away by investing in both CGE Energy and Green Stream 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 CGE Energy and Green Stream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CGE Energy and Green Stream Holdings, you can compare the effects of market volatilities on CGE Energy and Green Stream 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 CGE Energy with a short position of Green Stream. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGE Energy and Green Stream.
Diversification Opportunities for CGE Energy and Green Stream
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between CGE and Green is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding CGE Energy and Green Stream Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Stream Holdings and CGE Energy 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 CGE Energy are associated (or correlated) with Green Stream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Stream Holdings has no effect on the direction of CGE Energy i.e., CGE Energy and Green Stream go up and down completely randomly.
Pair Corralation between CGE Energy and Green Stream
If you would invest 0.01 in Green Stream Holdings on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Green Stream Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CGE Energy vs. Green Stream Holdings
Performance |
| Timeline |
| CGE Energy |
| Green Stream Holdings |
CGE Energy and Green Stream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGE Energy and Green Stream
The main advantage of trading using opposite CGE Energy and Green Stream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGE Energy position performs unexpectedly, Green Stream 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 Green Stream will offset losses from the drop in Green Stream's long position.| CGE Energy vs. Green Stream Holdings | CGE Energy vs. Mass Megawat Wind | CGE Energy vs. Clean Vision Corp |
| Green Stream vs. CGE Energy | Green Stream vs. Mass Megawat Wind | Green Stream vs. Clean Vision Corp | Green Stream vs. Atlantic Wind Solar |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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