Correlation Between Carnegie Clean and GEELY AUTOMOBILE
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE, you can compare the effects of market volatilities on Carnegie Clean and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and GEELY AUTOMOBILE.
Diversification Opportunities for Carnegie Clean and GEELY AUTOMOBILE
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and GEELY is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and GEELY AUTOMOBILE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEELY AUTOMOBILE has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and GEELY AUTOMOBILE go up and down completely randomly.
Pair Corralation between Carnegie Clean and GEELY AUTOMOBILE
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 1.78 times more return on investment than GEELY AUTOMOBILE. However, Carnegie Clean is 1.78 times more volatile than GEELY AUTOMOBILE. It trades about 0.0 of its potential returns per unit of risk. GEELY AUTOMOBILE is currently generating about -0.45 per unit of risk. If you would invest 2.12 in Carnegie Clean Energy on October 13, 2024 and sell it today you would lose (0.02) from holding Carnegie Clean Energy or give up 0.94% 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. GEELY AUTOMOBILE
Performance |
| Timeline |
| Carnegie Clean Energy |
| GEELY AUTOMOBILE |
Carnegie Clean and GEELY AUTOMOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and GEELY AUTOMOBILE
The main advantage of trading using opposite Carnegie Clean and GEELY AUTOMOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, GEELY AUTOMOBILE 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 GEELY AUTOMOBILE will offset losses from the drop in GEELY AUTOMOBILE'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 |
| GEELY AUTOMOBILE vs. HK Electric Investments | GEELY AUTOMOBILE vs. Virtus Investment Partners | GEELY AUTOMOBILE vs. CITY OFFICE REIT | GEELY AUTOMOBILE vs. British American Tobacco |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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