Correlation Between Clever Leaves and Clene
Can any of the company-specific risk be diversified away by investing in both Clever Leaves and Clene 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 Clever Leaves and Clene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clever Leaves Holdings and Clene Inc, you can compare the effects of market volatilities on Clever Leaves and Clene 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 Clever Leaves with a short position of Clene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clever Leaves and Clene.
Diversification Opportunities for Clever Leaves and Clene
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clever and Clene is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and Clene Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clene Inc and Clever Leaves 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 Clever Leaves Holdings are associated (or correlated) with Clene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clene Inc has no effect on the direction of Clever Leaves i.e., Clever Leaves and Clene go up and down completely randomly.
Pair Corralation between Clever Leaves and Clene
Given the investment horizon of 90 days Clever Leaves is expected to generate 1.43 times less return on investment than Clene. But when comparing it to its historical volatility, Clever Leaves Holdings is 1.05 times less risky than Clene. It trades about 0.08 of its potential returns per unit of risk. Clene Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6.97 in Clene Inc on September 3, 2024 and sell it today you would lose (3.25) from holding Clene Inc or give up 46.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.97% |
| Values | Daily Returns |
Clever Leaves Holdings vs. Clene Inc
Performance |
| Timeline |
| Clever Leaves Holdings |
| Clene Inc |
Clever Leaves and Clene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clever Leaves and Clene
The main advantage of trading using opposite Clever Leaves and Clene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clever Leaves position performs unexpectedly, Clene 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 Clene will offset losses from the drop in Clene's long position.| Clever Leaves vs. Pmv Pharmaceuticals | Clever Leaves vs. MediciNova | Clever Leaves vs. Pharvaris BV | Clever Leaves vs. PepGen |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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