Correlation Between Carnegie Clean and INTER CARS
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and INTER CARS 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 Carnegie Clean and INTER CARS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and INTER CARS SA, you can compare the effects of market volatilities on Carnegie Clean and INTER CARS 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 Carnegie Clean with a short position of INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and INTER CARS.
Diversification Opportunities for Carnegie Clean and INTER CARS
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and INTER is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA and Carnegie Clean 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 Carnegie Clean Energy are associated (or correlated) with INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and INTER CARS go up and down completely randomly.
Pair Corralation between Carnegie Clean and INTER CARS
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to under-perform the INTER CARS. In addition to that, Carnegie Clean is 1.33 times more volatile than INTER CARS SA. It trades about 0.0 of its total potential returns per unit of risk. INTER CARS SA is currently generating about 0.22 per unit of volatility. If you would invest 11,760 in INTER CARS SA on October 13, 2024 and sell it today you would earn a total of 960.00 from holding INTER CARS SA or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. INTER CARS SA
Performance |
| Timeline |
| Carnegie Clean Energy |
| INTER CARS SA |
Carnegie Clean and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and INTER CARS
The main advantage of trading using opposite Carnegie Clean and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| Carnegie Clean vs. MOLSON RS BEVERAGE | Carnegie Clean vs. Mount Gibson Iron | Carnegie Clean vs. Nippon Steel | Carnegie Clean vs. MTY Food Group |
| INTER CARS vs. Yuexiu Transport Infrastructure | INTER CARS vs. Tsingtao Brewery | INTER CARS vs. DAIDO METAL TD | INTER CARS vs. Osisko Metals |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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