Correlation Between Globalfoundries and Carbon Revolution
Can any of the company-specific risk be diversified away by investing in both Globalfoundries and Carbon Revolution 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 Globalfoundries and Carbon Revolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globalfoundries and Carbon Revolution Public, you can compare the effects of market volatilities on Globalfoundries and Carbon Revolution 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 Globalfoundries with a short position of Carbon Revolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalfoundries and Carbon Revolution.
Diversification Opportunities for Globalfoundries and Carbon Revolution
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globalfoundries and Carbon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Globalfoundries and Carbon Revolution Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carbon Revolution Public and Globalfoundries 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 Globalfoundries are associated (or correlated) with Carbon Revolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carbon Revolution Public has no effect on the direction of Globalfoundries i.e., Globalfoundries and Carbon Revolution go up and down completely randomly.
Pair Corralation between Globalfoundries and Carbon Revolution
Considering the 90-day investment horizon Globalfoundries is expected to under-perform the Carbon Revolution. But the stock apears to be less risky and, when comparing its historical volatility, Globalfoundries is 10.27 times less risky than Carbon Revolution. The stock trades about -0.03 of its potential returns per unit of risk. The Carbon Revolution Public is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4.89 in Carbon Revolution Public on November 8, 2024 and sell it today you would lose (0.38) from holding Carbon Revolution Public or give up 7.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.81% |
| Values | Daily Returns |
Globalfoundries vs. Carbon Revolution Public
Performance |
| Timeline |
| Globalfoundries |
| Carbon Revolution Public |
Globalfoundries and Carbon Revolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalfoundries and Carbon Revolution
The main advantage of trading using opposite Globalfoundries and Carbon Revolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalfoundries position performs unexpectedly, Carbon Revolution 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 Carbon Revolution will offset losses from the drop in Carbon Revolution's long position.| Globalfoundries vs. First Solar | Globalfoundries vs. Sunrun Inc | Globalfoundries vs. Canadian Solar | Globalfoundries vs. SolarEdge Technologies |
| Carbon Revolution vs. Northstar Clean Technologies | Carbon Revolution vs. Pinterest | Carbon Revolution vs. CF Industries Holdings | Carbon Revolution vs. Cheche Group Class |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |