Correlation Between Carnegie Clean and CTS Eventim
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and CTS Eventim 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 CTS Eventim 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 CTS Eventim AG, you can compare the effects of market volatilities on Carnegie Clean and CTS Eventim 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 CTS Eventim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and CTS Eventim.
Diversification Opportunities for Carnegie Clean and CTS Eventim
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and CTS is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and CTS Eventim AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Eventim AG 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 CTS Eventim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Eventim AG has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and CTS Eventim go up and down completely randomly.
Pair Corralation between Carnegie Clean and CTS Eventim
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 1.09 times more return on investment than CTS Eventim. However, Carnegie Clean is 1.09 times more volatile than CTS Eventim AG. It trades about -0.07 of its potential returns per unit of risk. CTS Eventim AG is currently generating about -0.13 per unit of risk. If you would invest 2.22 in Carnegie Clean Energy on September 13, 2024 and sell it today you would lose (0.12) from holding Carnegie Clean Energy or give up 5.41% 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. CTS Eventim AG
Performance |
| Timeline |
| Carnegie Clean Energy |
| CTS Eventim AG |
Carnegie Clean and CTS Eventim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and CTS Eventim
The main advantage of trading using opposite Carnegie Clean and CTS Eventim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, CTS Eventim 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 CTS Eventim will offset losses from the drop in CTS Eventim's 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 |
| CTS Eventim vs. ON SEMICONDUCTOR | CTS Eventim vs. Brockhaus Capital Management | CTS Eventim vs. Taiwan Semiconductor Manufacturing | CTS Eventim vs. CeoTronics AG |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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