Correlation Between Mass Megawat and CGE Energy
Can any of the company-specific risk be diversified away by investing in both Mass Megawat and CGE 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 Mass Megawat and CGE Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mass Megawat Wind and CGE Energy, you can compare the effects of market volatilities on Mass Megawat and CGE 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 Mass Megawat with a short position of CGE Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mass Megawat and CGE Energy.
Diversification Opportunities for Mass Megawat and CGE Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mass and CGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mass Megawat Wind and CGE Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGE Energy and Mass Megawat 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 Mass Megawat Wind are associated (or correlated) with CGE Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGE Energy has no effect on the direction of Mass Megawat i.e., Mass Megawat and CGE Energy go up and down completely randomly.
Pair Corralation between Mass Megawat and CGE Energy
If you would invest 45.00 in Mass Megawat Wind on August 27, 2024 and sell it today you would lose (9.00) from holding Mass Megawat Wind or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mass Megawat Wind vs. CGE Energy
Performance |
| Timeline |
| Mass Megawat Wind |
| CGE Energy |
Mass Megawat and CGE Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mass Megawat and CGE Energy
The main advantage of trading using opposite Mass Megawat and CGE Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mass Megawat position performs unexpectedly, CGE 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 CGE Energy will offset losses from the drop in CGE Energy's long position.| Mass Megawat vs. Element Solutions | Mass Megawat vs. Orion Engineered Carbons | Mass Megawat vs. Minerals Technologies | Mass Megawat vs. Ingevity Corp |
| CGE Energy vs. Green Stream Holdings | CGE Energy vs. Mass Megawat Wind | CGE Energy vs. Clean Vision Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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