Correlation Between Carnegie Clean and Power Assets
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and Power Assets 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 Power Assets 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 Power Assets Holdings, you can compare the effects of market volatilities on Carnegie Clean and Power Assets 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 Power Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Power Assets.
Diversification Opportunities for Carnegie Clean and Power Assets
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carnegie and Power is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and Power Assets Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Assets Holdings 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 Power Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Assets Holdings has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and Power Assets go up and down completely randomly.
Pair Corralation between Carnegie Clean and Power Assets
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to under-perform the Power Assets. In addition to that, Carnegie Clean is 2.24 times more volatile than Power Assets Holdings. It trades about -0.07 of its total potential returns per unit of risk. Power Assets Holdings is currently generating about -0.03 per unit of volatility. If you would invest 645.00 in Power Assets Holdings on October 23, 2024 and sell it today you would lose (5.00) from holding Power Assets Holdings or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Power Assets Holdings
Performance |
| Timeline |
| Carnegie Clean Energy |
| Power Assets Holdings |
Carnegie Clean and Power Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Power Assets
The main advantage of trading using opposite Carnegie Clean and Power Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, Power Assets 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 Power Assets will offset losses from the drop in Power Assets' long position.| Carnegie Clean vs. Orsted AS | Carnegie Clean vs. EDP Renovveis SA | Carnegie Clean vs. CGN Power Co | Carnegie Clean vs. Huaneng Power International |
| Power Assets vs. SBI Insurance Group | Power Assets vs. THAI BEVERAGE | Power Assets vs. Thai Beverage Public | Power Assets vs. BOSTON BEER A |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |