Correlation Between Clene and Atlantic Sapphire
Can any of the company-specific risk be diversified away by investing in both Clene and Atlantic Sapphire 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 Clene and Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clene Inc and Atlantic Sapphire ASA, you can compare the effects of market volatilities on Clene and Atlantic Sapphire 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 Clene with a short position of Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clene and Atlantic Sapphire.
Diversification Opportunities for Clene and Atlantic Sapphire
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clene and Atlantic is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Clene Inc and Atlantic Sapphire ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire ASA and Clene 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 Clene Inc are associated (or correlated) with Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire ASA has no effect on the direction of Clene i.e., Clene and Atlantic Sapphire go up and down completely randomly.
Pair Corralation between Clene and Atlantic Sapphire
Assuming the 90 days horizon Clene is expected to generate 1.17 times less return on investment than Atlantic Sapphire. In addition to that, Clene is 1.9 times more volatile than Atlantic Sapphire ASA. It trades about 0.07 of its total potential returns per unit of risk. Atlantic Sapphire ASA is currently generating about 0.15 per unit of volatility. If you would invest 0.93 in Atlantic Sapphire ASA on September 19, 2024 and sell it today you would earn a total of 0.27 from holding Atlantic Sapphire ASA or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Clene Inc vs. Atlantic Sapphire ASA
Performance |
| Timeline |
| Clene Inc |
| Atlantic Sapphire ASA |
Clene and Atlantic Sapphire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clene and Atlantic Sapphire
The main advantage of trading using opposite Clene and Atlantic Sapphire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clene position performs unexpectedly, Atlantic Sapphire 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 Atlantic Sapphire will offset losses from the drop in Atlantic Sapphire's long position.The idea behind Clene Inc and Atlantic Sapphire ASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Atlantic Sapphire vs. Forafric Global PLC | Atlantic Sapphire vs. Forafric Global PLC | Atlantic Sapphire vs. GrainCorp Limited | Atlantic Sapphire vs. Australian Agricultural |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |