Correlation Between Freight Technologies and CurrentC Power
Can any of the company-specific risk be diversified away by investing in both Freight Technologies and CurrentC Power 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 Freight Technologies and CurrentC Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freight Technologies and CurrentC Power, you can compare the effects of market volatilities on Freight Technologies and CurrentC Power 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 Freight Technologies with a short position of CurrentC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freight Technologies and CurrentC Power.
Diversification Opportunities for Freight Technologies and CurrentC Power
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Freight and CurrentC is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Freight Technologies and CurrentC Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurrentC Power and Freight Technologies 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 Freight Technologies are associated (or correlated) with CurrentC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurrentC Power has no effect on the direction of Freight Technologies i.e., Freight Technologies and CurrentC Power go up and down completely randomly.
Pair Corralation between Freight Technologies and CurrentC Power
Given the investment horizon of 90 days Freight Technologies is expected to under-perform the CurrentC Power. But the stock apears to be less risky and, when comparing its historical volatility, Freight Technologies is 4.12 times less risky than CurrentC Power. The stock trades about -0.1 of its potential returns per unit of risk. The CurrentC Power is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 15.00 in CurrentC Power on September 2, 2024 and sell it today you would lose (2.00) from holding CurrentC Power or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freight Technologies vs. CurrentC Power
Performance |
| Timeline |
| Freight Technologies |
| CurrentC Power |
Freight Technologies and CurrentC Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freight Technologies and CurrentC Power
The main advantage of trading using opposite Freight Technologies and CurrentC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freight Technologies position performs unexpectedly, CurrentC Power 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 CurrentC Power will offset losses from the drop in CurrentC Power's long position.| Freight Technologies vs. Infobird Co | Freight Technologies vs. HeartCore Enterprises | Freight Technologies vs. CXApp Inc | Freight Technologies vs. Quhuo |
| CurrentC Power vs. Legacy Education | CurrentC Power vs. Apple Inc | CurrentC Power vs. NVIDIA | CurrentC Power vs. Microsoft |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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