Correlation Between Fluent and CVW CleanTech
Can any of the company-specific risk be diversified away by investing in both Fluent and CVW CleanTech 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 Fluent and CVW CleanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and CVW CleanTech, you can compare the effects of market volatilities on Fluent and CVW CleanTech 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 Fluent with a short position of CVW CleanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and CVW CleanTech.
Diversification Opportunities for Fluent and CVW CleanTech
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fluent and CVW is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and CVW CleanTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVW CleanTech and Fluent 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 Fluent Inc are associated (or correlated) with CVW CleanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVW CleanTech has no effect on the direction of Fluent i.e., Fluent and CVW CleanTech go up and down completely randomly.
Pair Corralation between Fluent and CVW CleanTech
Given the investment horizon of 90 days Fluent Inc is expected to under-perform the CVW CleanTech. In addition to that, Fluent is 4.93 times more volatile than CVW CleanTech. It trades about -0.09 of its total potential returns per unit of risk. CVW CleanTech is currently generating about 0.18 per unit of volatility. If you would invest 59.00 in CVW CleanTech on September 3, 2024 and sell it today you would earn a total of 2.00 from holding CVW CleanTech or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluent Inc vs. CVW CleanTech
Performance |
| Timeline |
| Fluent Inc |
| CVW CleanTech |
Fluent and CVW CleanTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and CVW CleanTech
The main advantage of trading using opposite Fluent and CVW CleanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent position performs unexpectedly, CVW CleanTech 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 CVW CleanTech will offset losses from the drop in CVW CleanTech's long position.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| CVW CleanTech vs. Perseus Mining Limited | CVW CleanTech vs. Summa Silver Corp | CVW CleanTech vs. Mangazeya Mining | CVW CleanTech vs. Boston Beer |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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