Correlation Between Carnegie Clean and EAGLE MATERIALS
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and EAGLE MATERIALS 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 EAGLE MATERIALS 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 EAGLE MATERIALS, you can compare the effects of market volatilities on Carnegie Clean and EAGLE MATERIALS 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 EAGLE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and EAGLE MATERIALS.
Diversification Opportunities for Carnegie Clean and EAGLE MATERIALS
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carnegie and EAGLE is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and EAGLE MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS 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 EAGLE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and EAGLE MATERIALS go up and down completely randomly.
Pair Corralation between Carnegie Clean and EAGLE MATERIALS
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 1.54 times more return on investment than EAGLE MATERIALS. However, Carnegie Clean is 1.54 times more volatile than EAGLE MATERIALS. It trades about 0.02 of its potential returns per unit of risk. EAGLE MATERIALS is currently generating about -0.04 per unit of risk. If you would invest 2.10 in Carnegie Clean Energy on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Carnegie Clean Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. EAGLE MATERIALS
Performance |
| Timeline |
| Carnegie Clean Energy |
| EAGLE MATERIALS |
Carnegie Clean and EAGLE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and EAGLE MATERIALS
The main advantage of trading using opposite Carnegie Clean and EAGLE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, EAGLE MATERIALS 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 EAGLE MATERIALS will offset losses from the drop in EAGLE MATERIALS's long position.| Carnegie Clean vs. ePlay Digital | Carnegie Clean vs. STGEORGE MINING LTD | Carnegie Clean vs. Playtech plc | Carnegie Clean vs. Eurasia Mining Plc |
| EAGLE MATERIALS vs. ARDAGH METAL PACDL 0001 | EAGLE MATERIALS vs. MAGNUM MINING EXP | EAGLE MATERIALS vs. Stag Industrial | EAGLE MATERIALS vs. Carnegie Clean Energy |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |