Correlation Between Carnegie Clean and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Carnegie Clean and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Superior Plus.
Diversification Opportunities for Carnegie Clean and Superior Plus
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carnegie and Superior is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and Superior Plus go up and down completely randomly.
Pair Corralation between Carnegie Clean and Superior Plus
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to under-perform the Superior Plus. In addition to that, Carnegie Clean is 2.03 times more volatile than Superior Plus Corp. It trades about -0.03 of its total potential returns per unit of risk. Superior Plus Corp is currently generating about -0.03 per unit of volatility. If you would invest 557.00 in Superior Plus Corp on September 14, 2024 and sell it today you would lose (113.00) from holding Superior Plus Corp or give up 20.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Superior Plus Corp
Performance |
| Timeline |
| Carnegie Clean Energy |
| Superior Plus Corp |
Carnegie Clean and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Superior Plus
The main advantage of trading using opposite Carnegie Clean and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Carnegie Clean vs. Superior Plus Corp | Carnegie Clean vs. SIVERS SEMICONDUCTORS AB | Carnegie Clean vs. Norsk Hydro ASA | Carnegie Clean vs. Reliance Steel Aluminum |
| Superior Plus vs. Boiron SA | Superior Plus vs. COSMOSTEEL HLDGS | Superior Plus vs. Vastned Retail NV | Superior Plus vs. BURLINGTON STORES |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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