Correlation Between Clime Investment and Challenger
Can any of the company-specific risk be diversified away by investing in both Clime Investment and Challenger 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 Clime Investment and Challenger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clime Investment Management and Challenger, you can compare the effects of market volatilities on Clime Investment and Challenger 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 Clime Investment with a short position of Challenger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clime Investment and Challenger.
Diversification Opportunities for Clime Investment and Challenger
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clime and Challenger is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Clime Investment Management and Challenger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Challenger and Clime Investment 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 Clime Investment Management are associated (or correlated) with Challenger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Challenger has no effect on the direction of Clime Investment i.e., Clime Investment and Challenger go up and down completely randomly.
Pair Corralation between Clime Investment and Challenger
If you would invest 605.00 in Challenger on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Challenger or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clime Investment Management vs. Challenger
Performance |
| Timeline |
| Clime Investment Man |
| Challenger |
Clime Investment and Challenger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clime Investment and Challenger
The main advantage of trading using opposite Clime Investment and Challenger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clime Investment position performs unexpectedly, Challenger 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 Challenger will offset losses from the drop in Challenger's long position.| Clime Investment vs. WA1 Resources | Clime Investment vs. Predictive Discovery | Clime Investment vs. Cooper Metals | Clime Investment vs. OD6 Metals |
| Challenger vs. Group 6 Metals | Challenger vs. Land Homes Group | Challenger vs. Sandon Capital Investments | Challenger vs. Clime Investment Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |