Correlation Between Ebang International and ClearSign Combustion
Can any of the company-specific risk be diversified away by investing in both Ebang International and ClearSign Combustion 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 Ebang International and ClearSign Combustion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebang International Holdings and ClearSign Combustion, you can compare the effects of market volatilities on Ebang International and ClearSign Combustion 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 Ebang International with a short position of ClearSign Combustion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebang International and ClearSign Combustion.
Diversification Opportunities for Ebang International and ClearSign Combustion
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ebang and ClearSign is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ebang International Holdings and ClearSign Combustion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearSign Combustion and Ebang International 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 Ebang International Holdings are associated (or correlated) with ClearSign Combustion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearSign Combustion has no effect on the direction of Ebang International i.e., Ebang International and ClearSign Combustion go up and down completely randomly.
Pair Corralation between Ebang International and ClearSign Combustion
Given the investment horizon of 90 days Ebang International is expected to generate 2.36 times less return on investment than ClearSign Combustion. In addition to that, Ebang International is 1.1 times more volatile than ClearSign Combustion. It trades about 0.0 of its total potential returns per unit of risk. ClearSign Combustion is currently generating about 0.01 per unit of volatility. If you would invest 116.00 in ClearSign Combustion on November 28, 2024 and sell it today you would lose (33.21) from holding ClearSign Combustion or give up 28.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ebang International Holdings vs. ClearSign Combustion
Performance |
| Timeline |
| Ebang International |
| ClearSign Combustion |
Ebang International and ClearSign Combustion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebang International and ClearSign Combustion
The main advantage of trading using opposite Ebang International and ClearSign Combustion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebang International position performs unexpectedly, ClearSign Combustion 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 ClearSign Combustion will offset losses from the drop in ClearSign Combustion's long position.| Ebang International vs. Nano Dimension | Ebang International vs. Desktop Metal | Ebang International vs. HP Inc | Ebang International vs. Cricut Inc |
| ClearSign Combustion vs. Urban One Class | ClearSign Combustion vs. Broadway Financial | ClearSign Combustion vs. Ideal Power | ClearSign Combustion vs. Carver Bancorp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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