Correlation Between Clean Energy and Ouster
Can any of the company-specific risk be diversified away by investing in both Clean Energy and Ouster 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 Clean Energy and Ouster into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Pathway and Ouster Inc, you can compare the effects of market volatilities on Clean Energy and Ouster 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 Clean Energy with a short position of Ouster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and Ouster.
Diversification Opportunities for Clean Energy and Ouster
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clean and Ouster is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Pathway and Ouster Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ouster Inc and Clean Energy 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 Clean Energy Pathway are associated (or correlated) with Ouster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ouster Inc has no effect on the direction of Clean Energy i.e., Clean Energy and Ouster go up and down completely randomly.
Pair Corralation between Clean Energy and Ouster
Given the investment horizon of 90 days Clean Energy Pathway is expected to under-perform the Ouster. But the pink sheet apears to be less risky and, when comparing its historical volatility, Clean Energy Pathway is 1.07 times less risky than Ouster. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Ouster Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 587.00 in Ouster Inc on September 12, 2024 and sell it today you would earn a total of 377.00 from holding Ouster Inc or generate 64.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Clean Energy Pathway vs. Ouster Inc
Performance |
| Timeline |
| Clean Energy Pathway |
| Ouster Inc |
Clean Energy and Ouster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and Ouster
The main advantage of trading using opposite Clean Energy and Ouster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, Ouster 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 Ouster will offset losses from the drop in Ouster's long position.The idea behind Clean Energy Pathway and Ouster Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ouster vs. KULR Technology Group | Ouster vs. LightPath Technologies | Ouster vs. Daktronics | Ouster vs. Kopin |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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