Correlation Between Logan Ridge and Cleantech Power
Can any of the company-specific risk be diversified away by investing in both Logan Ridge 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 Logan Ridge and Cleantech Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Cleantech Power Corp, you can compare the effects of market volatilities on Logan Ridge 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 Logan Ridge with a short position of Cleantech Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Cleantech Power.
Diversification Opportunities for Logan Ridge and Cleantech Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Logan and Cleantech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance 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 Logan Ridge 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 Logan Ridge Finance 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 Logan Ridge i.e., Logan Ridge and Cleantech Power go up and down completely randomly.
Pair Corralation between Logan Ridge and Cleantech Power
Given the investment horizon of 90 days Logan Ridge is expected to generate 139.65 times less return on investment than Cleantech Power. But when comparing it to its historical volatility, Logan Ridge Finance is 73.94 times less risky than Cleantech Power. It trades about 0.05 of its potential returns per unit of risk. Cleantech Power Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5.67 in Cleantech Power Corp on September 2, 2024 and sell it today you would lose (5.08) from holding Cleantech Power Corp or give up 89.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.15% |
| Values | Daily Returns |
Logan Ridge Finance vs. Cleantech Power Corp
Performance |
| Timeline |
| Logan Ridge Finance |
| Cleantech Power Corp |
Logan Ridge and Cleantech Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Cleantech Power
The main advantage of trading using opposite Logan Ridge and Cleantech Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge 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.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| Cleantech Power vs. Legacy Education | Cleantech Power vs. Apple Inc | Cleantech Power vs. NVIDIA | Cleantech 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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