Correlation Between Loop Energy and CBAK Energy
Can any of the company-specific risk be diversified away by investing in both Loop Energy and CBAK Energy 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 Loop Energy and CBAK Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loop Energy and CBAK Energy Technology, you can compare the effects of market volatilities on Loop Energy and CBAK Energy 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 Loop Energy with a short position of CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loop Energy and CBAK Energy.
Diversification Opportunities for Loop Energy and CBAK Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loop and CBAK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Loop Energy and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology and Loop Energy 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 Loop Energy are associated (or correlated) with CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of Loop Energy i.e., Loop Energy and CBAK Energy go up and down completely randomly.
Pair Corralation between Loop Energy and CBAK Energy
If you would invest 8.00 in Loop Energy on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Loop Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loop Energy vs. CBAK Energy Technology
Performance |
| Timeline |
| Loop Energy |
| CBAK Energy Technology |
Loop Energy and CBAK Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loop Energy and CBAK Energy
The main advantage of trading using opposite Loop Energy and CBAK Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loop Energy position performs unexpectedly, CBAK Energy 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 CBAK Energy will offset losses from the drop in CBAK Energy's long position.| Loop Energy vs. Legrand SA ADR | Loop Energy vs. AFC Energy plc | Loop Energy vs. Sunrise New Energy | Loop Energy vs. Tantalus Systems Holding |
| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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