Correlation Between First Ship and Cleantech Power
Can any of the company-specific risk be diversified away by investing in both First Ship and Cleantech 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 First Ship and Cleantech Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Cleantech Power Corp, you can compare the effects of market volatilities on First Ship and Cleantech 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 First Ship with a short position of Cleantech Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Cleantech Power.
Diversification Opportunities for First Ship and Cleantech Power
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between First and Cleantech is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and Cleantech Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleantech Power Corp and First Ship 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 First Ship Lease are associated (or correlated) with Cleantech Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleantech Power Corp has no effect on the direction of First Ship i.e., First Ship and Cleantech Power go up and down completely randomly.
Pair Corralation between First Ship and Cleantech Power
If you would invest 0.59 in Cleantech Power Corp on December 7, 2024 and sell it today you would earn a total of 0.00 from holding Cleantech Power Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
First Ship Lease vs. Cleantech Power Corp
Performance |
| Timeline |
| First Ship Lease |
| Cleantech Power Corp |
First Ship and Cleantech Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Cleantech Power
The main advantage of trading using opposite First Ship and Cleantech Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, Cleantech 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 Cleantech Power will offset losses from the drop in Cleantech Power's long position.| First Ship vs. WPP PLC ADR | First Ship vs. Intuitive Surgical | First Ship vs. RBC Bearings Incorporated | First Ship vs. Rocky Brands |
| Cleantech Power vs. Enlight Renewable Energy | Cleantech Power vs. Cheniere Energy Partners | Cleantech Power vs. Summit Midstream | Cleantech Power vs. WEC Energy Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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