Correlation Between CVW CleanTech and Eddy Smart
Can any of the company-specific risk be diversified away by investing in both CVW CleanTech and Eddy Smart 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 CVW CleanTech and Eddy Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CleanTech and Eddy Smart Home, you can compare the effects of market volatilities on CVW CleanTech and Eddy Smart 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 CVW CleanTech with a short position of Eddy Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and Eddy Smart.
Diversification Opportunities for CVW CleanTech and Eddy Smart
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVW and Eddy is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech and Eddy Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eddy Smart Home and CVW CleanTech 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 CVW CleanTech are associated (or correlated) with Eddy Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eddy Smart Home has no effect on the direction of CVW CleanTech i.e., CVW CleanTech and Eddy Smart go up and down completely randomly.
Pair Corralation between CVW CleanTech and Eddy Smart
Assuming the 90 days horizon CVW CleanTech is expected to generate 0.37 times more return on investment than Eddy Smart. However, CVW CleanTech is 2.67 times less risky than Eddy Smart. It trades about 0.13 of its potential returns per unit of risk. Eddy Smart Home is currently generating about -0.2 per unit of risk. If you would invest 86.00 in CVW CleanTech on September 13, 2024 and sell it today you would earn a total of 4.00 from holding CVW CleanTech or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVW CleanTech vs. Eddy Smart Home
Performance |
| Timeline |
| CVW CleanTech |
| Eddy Smart Home |
CVW CleanTech and Eddy Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CleanTech and Eddy Smart
The main advantage of trading using opposite CVW CleanTech and Eddy Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech position performs unexpectedly, Eddy Smart 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 Eddy Smart will offset losses from the drop in Eddy Smart's long position.| CVW CleanTech vs. Ressources Minieres Radisson | CVW CleanTech vs. Galantas Gold Corp | CVW CleanTech vs. Red Pine Exploration | CVW CleanTech vs. Kore Mining |
| Eddy Smart vs. Simply Better Brands | Eddy Smart vs. Forward Water Technologies | Eddy Smart vs. Pulse Oil Corp | Eddy Smart vs. C3 Metals |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| 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 | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |