Correlation Between Cleanaway Waste and CUE Energy
Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste and CUE Energy 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 Cleanaway Waste and CUE Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and CUE Energy Resources, you can compare the effects of market volatilities on Cleanaway Waste and CUE Energy 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 Cleanaway Waste with a short position of CUE Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and CUE Energy.
Diversification Opportunities for Cleanaway Waste and CUE Energy
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cleanaway and CUE is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management and CUE Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CUE Energy Resources and Cleanaway Waste 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 Cleanaway Waste Management are associated (or correlated) with CUE Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CUE Energy Resources has no effect on the direction of Cleanaway Waste i.e., Cleanaway Waste and CUE Energy go up and down completely randomly.
Pair Corralation between Cleanaway Waste and CUE Energy
Assuming the 90 days trading horizon Cleanaway Waste is expected to generate 2.37 times less return on investment than CUE Energy. But when comparing it to its historical volatility, Cleanaway Waste Management is 3.96 times less risky than CUE Energy. It trades about 0.02 of its potential returns per unit of risk. CUE Energy Resources is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9.55 in CUE Energy Resources on September 3, 2024 and sell it today you would lose (0.55) from holding CUE Energy Resources or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleanaway Waste Management vs. CUE Energy Resources
Performance |
| Timeline |
| Cleanaway Waste Mana |
| CUE Energy Resources |
Cleanaway Waste and CUE Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway Waste and CUE Energy
The main advantage of trading using opposite Cleanaway Waste and CUE Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste position performs unexpectedly, CUE Energy 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 CUE Energy will offset losses from the drop in CUE Energy's long position.| Cleanaway Waste vs. Jupiter Energy | Cleanaway Waste vs. WA1 Resources | Cleanaway Waste vs. Predictive Discovery | Cleanaway Waste vs. Cooper Metals |
| CUE Energy vs. Charter Hall Retail | CUE Energy vs. Cleanaway Waste Management | CUE Energy vs. Super Retail Group | CUE Energy vs. Retail Food Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |