Correlation Between Crown Electrokinetics and General Environmental
Can any of the company-specific risk be diversified away by investing in both Crown Electrokinetics and General Environmental 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 Crown Electrokinetics and General Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crown Electrokinetics Corp and General Environmental Management, you can compare the effects of market volatilities on Crown Electrokinetics and General Environmental 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 Crown Electrokinetics with a short position of General Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Electrokinetics and General Environmental.
Diversification Opportunities for Crown Electrokinetics and General Environmental
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Crown and General is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Crown Electrokinetics Corp and General Environmental Manageme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Environmental and Crown Electrokinetics 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 Crown Electrokinetics Corp are associated (or correlated) with General Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Environmental has no effect on the direction of Crown Electrokinetics i.e., Crown Electrokinetics and General Environmental go up and down completely randomly.
Pair Corralation between Crown Electrokinetics and General Environmental
Given the investment horizon of 90 days Crown Electrokinetics Corp is expected to under-perform the General Environmental. In addition to that, Crown Electrokinetics is 1.72 times more volatile than General Environmental Management. It trades about -0.31 of its total potential returns per unit of risk. General Environmental Management is currently generating about 0.06 per unit of volatility. If you would invest 63.00 in General Environmental Management on September 1, 2024 and sell it today you would earn a total of 18.00 from holding General Environmental Management or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Crown Electrokinetics Corp vs. General Environmental Manageme
Performance |
| Timeline |
| Crown Electrokinetics |
| General Environmental |
Crown Electrokinetics and General Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Electrokinetics and General Environmental
The main advantage of trading using opposite Crown Electrokinetics and General Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Electrokinetics position performs unexpectedly, General Environmental 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 General Environmental will offset losses from the drop in General Environmental's long position.| Crown Electrokinetics vs. Coroware | Crown Electrokinetics vs. Loop Industries | Crown Electrokinetics vs. Hudson Technologies | Crown Electrokinetics vs. General Environmental Management |
| General Environmental vs. Element Solutions | General Environmental vs. Orion Engineered Carbons | General Environmental vs. Minerals Technologies | General Environmental vs. Ingevity Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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