Correlation Between Danimer Scientific and Crown Electrokinetics
Can any of the company-specific risk be diversified away by investing in both Danimer Scientific and Crown Electrokinetics 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 Danimer Scientific and Crown Electrokinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danimer Scientific and Crown Electrokinetics Corp, you can compare the effects of market volatilities on Danimer Scientific and Crown Electrokinetics 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 Danimer Scientific with a short position of Crown Electrokinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danimer Scientific and Crown Electrokinetics.
Diversification Opportunities for Danimer Scientific and Crown Electrokinetics
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Danimer and Crown is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Danimer Scientific and Crown Electrokinetics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Electrokinetics and Danimer Scientific 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 Danimer Scientific are associated (or correlated) with Crown Electrokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Electrokinetics has no effect on the direction of Danimer Scientific i.e., Danimer Scientific and Crown Electrokinetics go up and down completely randomly.
Pair Corralation between Danimer Scientific and Crown Electrokinetics
Given the investment horizon of 90 days Danimer Scientific is expected to generate 1.13 times more return on investment than Crown Electrokinetics. However, Danimer Scientific is 1.13 times more volatile than Crown Electrokinetics Corp. It trades about -0.24 of its potential returns per unit of risk. Crown Electrokinetics Corp is currently generating about -0.5 per unit of risk. If you would invest 1,332 in Danimer Scientific on September 2, 2024 and sell it today you would lose (682.00) from holding Danimer Scientific or give up 51.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danimer Scientific vs. Crown Electrokinetics Corp
Performance |
| Timeline |
| Danimer Scientific |
| Crown Electrokinetics |
Danimer Scientific and Crown Electrokinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danimer Scientific and Crown Electrokinetics
The main advantage of trading using opposite Danimer Scientific and Crown Electrokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danimer Scientific position performs unexpectedly, Crown Electrokinetics 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 Crown Electrokinetics will offset losses from the drop in Crown Electrokinetics' long position.| Danimer Scientific vs. LyondellBasell Industries NV | Danimer Scientific vs. International Flavors Fragrances | Danimer Scientific vs. Cabot | Danimer Scientific vs. Westlake Chemical |
| Crown Electrokinetics vs. Coroware | Crown Electrokinetics vs. Loop Industries | Crown Electrokinetics vs. Hudson Technologies | Crown Electrokinetics vs. General Environmental Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |