Correlation Between Global E and Clear Secure
Can any of the company-specific risk be diversified away by investing in both Global E and Clear Secure 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 Global E and Clear Secure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Clear Secure, you can compare the effects of market volatilities on Global E and Clear Secure 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 Global E with a short position of Clear Secure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Clear Secure.
Diversification Opportunities for Global E and Clear Secure
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Clear is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure and Global E 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 Global E Online are associated (or correlated) with Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of Global E i.e., Global E and Clear Secure go up and down completely randomly.
Pair Corralation between Global E and Clear Secure
Given the investment horizon of 90 days Global E Online is expected to generate 1.08 times more return on investment than Clear Secure. However, Global E is 1.08 times more volatile than Clear Secure. It trades about 0.07 of its potential returns per unit of risk. Clear Secure is currently generating about 0.01 per unit of risk. If you would invest 2,252 in Global E Online on August 29, 2024 and sell it today you would earn a total of 2,934 from holding Global E Online or generate 130.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global E Online vs. Clear Secure
Performance |
| Timeline |
| Global E Online |
| Clear Secure |
Global E and Clear Secure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and Clear Secure
The main advantage of trading using opposite Global E and Clear Secure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E position performs unexpectedly, Clear Secure 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 Clear Secure will offset losses from the drop in Clear Secure's long position.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
| Clear Secure vs. Braze Inc | Clear Secure vs. Enfusion | Clear Secure vs. Freshworks | Clear Secure vs. Clearwater Analytics Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |