Correlation Between Ensurge Micropower and Cloudberry Clean
Can any of the company-specific risk be diversified away by investing in both Ensurge Micropower and Cloudberry Clean 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 Ensurge Micropower and Cloudberry Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ensurge Micropower ASA and Cloudberry Clean Energy, you can compare the effects of market volatilities on Ensurge Micropower and Cloudberry Clean 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 Ensurge Micropower with a short position of Cloudberry Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensurge Micropower and Cloudberry Clean.
Diversification Opportunities for Ensurge Micropower and Cloudberry Clean
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ensurge and Cloudberry is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ensurge Micropower ASA and Cloudberry Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloudberry Clean Energy and Ensurge Micropower 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 Ensurge Micropower ASA are associated (or correlated) with Cloudberry Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloudberry Clean Energy has no effect on the direction of Ensurge Micropower i.e., Ensurge Micropower and Cloudberry Clean go up and down completely randomly.
Pair Corralation between Ensurge Micropower and Cloudberry Clean
Assuming the 90 days trading horizon Ensurge Micropower ASA is expected to generate 2.15 times more return on investment than Cloudberry Clean. However, Ensurge Micropower is 2.15 times more volatile than Cloudberry Clean Energy. It trades about -0.08 of its potential returns per unit of risk. Cloudberry Clean Energy is currently generating about -0.2 per unit of risk. If you would invest 90.00 in Ensurge Micropower ASA on August 25, 2024 and sell it today you would lose (7.00) from holding Ensurge Micropower ASA or give up 7.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ensurge Micropower ASA vs. Cloudberry Clean Energy
Performance |
| Timeline |
| Ensurge Micropower ASA |
| Cloudberry Clean Energy |
Ensurge Micropower and Cloudberry Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensurge Micropower and Cloudberry Clean
The main advantage of trading using opposite Ensurge Micropower and Cloudberry Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensurge Micropower position performs unexpectedly, Cloudberry Clean 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 Cloudberry Clean will offset losses from the drop in Cloudberry Clean's long position.| Ensurge Micropower vs. Idex ASA | Ensurge Micropower vs. REC Silicon ASA | Ensurge Micropower vs. Aker Horizons AS | Ensurge Micropower vs. Saga Pure ASA |
| Cloudberry Clean vs. Bonheur | Cloudberry Clean vs. Scatec Solar OL | Cloudberry Clean vs. Aker Carbon Capture | Cloudberry Clean vs. Cadeler As |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |