Correlation Between Clearwater Analytics and Spruce Power
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics and Spruce Power 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 Clearwater Analytics and Spruce Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearwater Analytics Holdings and Spruce Power Holding, you can compare the effects of market volatilities on Clearwater Analytics and Spruce Power 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 Clearwater Analytics with a short position of Spruce Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and Spruce Power.
Diversification Opportunities for Clearwater Analytics and Spruce Power
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clearwater and Spruce is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and Spruce Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spruce Power Holding and Clearwater Analytics 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 Clearwater Analytics Holdings are associated (or correlated) with Spruce Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spruce Power Holding has no effect on the direction of Clearwater Analytics i.e., Clearwater Analytics and Spruce Power go up and down completely randomly.
Pair Corralation between Clearwater Analytics and Spruce Power
Given the investment horizon of 90 days Clearwater Analytics Holdings is expected to generate 0.89 times more return on investment than Spruce Power. However, Clearwater Analytics Holdings is 1.12 times less risky than Spruce Power. It trades about 0.15 of its potential returns per unit of risk. Spruce Power Holding is currently generating about -0.05 per unit of risk. If you would invest 1,892 in Clearwater Analytics Holdings on August 31, 2024 and sell it today you would earn a total of 1,212 from holding Clearwater Analytics Holdings or generate 64.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. Spruce Power Holding
Performance |
| Timeline |
| Clearwater Analytics |
| Spruce Power Holding |
Clearwater Analytics and Spruce Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and Spruce Power
The main advantage of trading using opposite Clearwater Analytics and Spruce Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics position performs unexpectedly, Spruce Power 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 Spruce Power will offset losses from the drop in Spruce Power's long position.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Envestnet |
| Spruce Power vs. JinkoSolar Holding | Spruce Power vs. Sunnova Energy International | Spruce Power vs. Canadian Solar | Spruce Power vs. Sunrun Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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