Correlation Between CVW CleanTech and Global E
Can any of the company-specific risk be diversified away by investing in both CVW CleanTech and Global E 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 Global E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CleanTech and Global E Online, you can compare the effects of market volatilities on CVW CleanTech and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and Global E.
Diversification Opportunities for CVW CleanTech and Global E
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between CVW and Global is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of CVW CleanTech i.e., CVW CleanTech and Global E go up and down completely randomly.
Pair Corralation between CVW CleanTech and Global E
Assuming the 90 days horizon CVW CleanTech is expected to generate 9.3 times less return on investment than Global E. But when comparing it to its historical volatility, CVW CleanTech is 3.56 times less risky than Global E. It trades about 0.18 of its potential returns per unit of risk. Global E Online is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 3,852 in Global E Online on September 3, 2024 and sell it today you would earn a total of 1,376 from holding Global E Online or generate 35.72% 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. Global E Online
Performance |
| Timeline |
| CVW CleanTech |
| Global E Online |
CVW CleanTech and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CleanTech and Global E
The main advantage of trading using opposite CVW CleanTech and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E's long position.| CVW CleanTech vs. Perseus Mining Limited | CVW CleanTech vs. Summa Silver Corp | CVW CleanTech vs. Mangazeya Mining | CVW CleanTech vs. Boston Beer |
| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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