Correlation Between Carnegie Clean and ULTRA CLEAN
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and ULTRA CLEAN 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 ULTRA CLEAN 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 ULTRA CLEAN HLDGS, you can compare the effects of market volatilities on Carnegie Clean and ULTRA CLEAN 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 ULTRA CLEAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and ULTRA CLEAN.
Diversification Opportunities for Carnegie Clean and ULTRA CLEAN
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carnegie and ULTRA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and ULTRA CLEAN HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ULTRA CLEAN HLDGS 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 ULTRA CLEAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ULTRA CLEAN HLDGS has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and ULTRA CLEAN go up and down completely randomly.
Pair Corralation between Carnegie Clean and ULTRA CLEAN
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 1.84 times more return on investment than ULTRA CLEAN. However, Carnegie Clean is 1.84 times more volatile than ULTRA CLEAN HLDGS. It trades about 0.11 of its potential returns per unit of risk. ULTRA CLEAN HLDGS is currently generating about 0.0 per unit of risk. If you would invest 2.12 in Carnegie Clean Energy on November 9, 2024 and sell it today you would earn a total of 0.22 from holding Carnegie Clean Energy or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. ULTRA CLEAN HLDGS
Performance |
| Timeline |
| Carnegie Clean Energy |
| ULTRA CLEAN HLDGS |
Carnegie Clean and ULTRA CLEAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and ULTRA CLEAN
The main advantage of trading using opposite Carnegie Clean and ULTRA CLEAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, ULTRA CLEAN 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 ULTRA CLEAN will offset losses from the drop in ULTRA CLEAN's long position.| Carnegie Clean vs. Reinsurance Group of | Carnegie Clean vs. INSURANCE AUST GRP | Carnegie Clean vs. ADRIATIC METALS LS 013355 | Carnegie Clean vs. United Insurance Holdings |
| ULTRA CLEAN vs. Harmony Gold Mining | ULTRA CLEAN vs. MAG SILVER | ULTRA CLEAN vs. ARDAGH METAL PACDL 0001 | ULTRA CLEAN vs. MAGNUM MINING EXP |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |