Correlation Between FEMALE HEALTH and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH and Carnegie 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 FEMALE HEALTH and Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Carnegie Clean Energy, you can compare the effects of market volatilities on FEMALE HEALTH and Carnegie 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 FEMALE HEALTH with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Carnegie Clean.
Diversification Opportunities for FEMALE HEALTH and Carnegie Clean
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FEMALE and Carnegie is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy and FEMALE HEALTH 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 FEMALE HEALTH are associated (or correlated) with Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of FEMALE HEALTH i.e., FEMALE HEALTH and Carnegie Clean go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Carnegie Clean
Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 1.06 times more return on investment than Carnegie Clean. However, FEMALE HEALTH is 1.06 times more volatile than Carnegie Clean Energy. It trades about 0.02 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about 0.01 per unit of risk. If you would invest 72.00 in FEMALE HEALTH on October 19, 2024 and sell it today you would lose (1.00) from holding FEMALE HEALTH or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
FEMALE HEALTH vs. Carnegie Clean Energy
Performance |
| Timeline |
| FEMALE HEALTH |
| Carnegie Clean Energy |
FEMALE HEALTH and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Carnegie Clean
The main advantage of trading using opposite FEMALE HEALTH and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH position performs unexpectedly, Carnegie 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| FEMALE HEALTH vs. BOSTON BEER A | FEMALE HEALTH vs. Cass Information Systems | FEMALE HEALTH vs. MICRONIC MYDATA | FEMALE HEALTH vs. SAN MIGUEL BREWERY |
| Carnegie Clean vs. Synovus Financial Corp | Carnegie Clean vs. JSC Halyk bank | Carnegie Clean vs. Direct Line Insurance | Carnegie Clean vs. SUN LIFE FINANCIAL |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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