Correlation Between Clean Energy and Blue Dolphin
Can any of the company-specific risk be diversified away by investing in both Clean Energy and Blue Dolphin 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 Energy and Blue Dolphin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and Blue Dolphin Energy, you can compare the effects of market volatilities on Clean Energy and Blue Dolphin 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 Energy with a short position of Blue Dolphin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Blue Dolphin.
Diversification Opportunities for Clean Energy and Blue Dolphin
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clean and Blue is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and Blue Dolphin Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Dolphin Energy and Clean 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 Clean Energy Fuels are associated (or correlated) with Blue Dolphin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Dolphin Energy has no effect on the direction of Clean Energy i.e., Clean Energy and Blue Dolphin go up and down completely randomly.
Pair Corralation between Clean Energy and Blue Dolphin
If you would invest 263.00 in Clean Energy Fuels on November 3, 2024 and sell it today you would earn a total of 68.00 from holding Clean Energy Fuels or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Clean Energy Fuels vs. Blue Dolphin Energy
Performance |
| Timeline |
| Clean Energy Fuels |
| Blue Dolphin Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Clean Energy and Blue Dolphin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and Blue Dolphin
The main advantage of trading using opposite Clean Energy and Blue Dolphin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, Blue Dolphin 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 Blue Dolphin will offset losses from the drop in Blue Dolphin's long position.| Clean Energy vs. Icahn Enterprises LP | Clean Energy vs. PBF Energy | Clean Energy vs. Delek Logistics Partners | Clean Energy vs. Aemetis |
| Blue Dolphin vs. Aemetis | Blue Dolphin vs. PBF Energy | Blue Dolphin vs. Clean Energy Fuels | Blue Dolphin vs. Par Pacific Holdings |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |