Correlation Between New Generation and C2E Energy
Can any of the company-specific risk be diversified away by investing in both New Generation and C2E 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 New Generation and C2E Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Generation Consumer and C2E Energy, you can compare the effects of market volatilities on New Generation and C2E 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 New Generation with a short position of C2E Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Generation and C2E Energy.
Diversification Opportunities for New Generation and C2E Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and C2E is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Generation Consumer and C2E Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C2E Energy and New Generation 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 New Generation Consumer are associated (or correlated) with C2E Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C2E Energy has no effect on the direction of New Generation i.e., New Generation and C2E Energy go up and down completely randomly.
Pair Corralation between New Generation and C2E Energy
Given the investment horizon of 90 days New Generation is expected to generate 6.84 times less return on investment than C2E Energy. But when comparing it to its historical volatility, New Generation Consumer is 3.11 times less risky than C2E Energy. It trades about 0.03 of its potential returns per unit of risk. C2E Energy is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.80 in C2E Energy on September 3, 2024 and sell it today you would lose (1.78) from holding C2E Energy or give up 98.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
New Generation Consumer vs. C2E Energy
Performance |
| Timeline |
| New Generation Consumer |
| C2E Energy |
New Generation and C2E Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Generation and C2E Energy
The main advantage of trading using opposite New Generation and C2E Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Generation position performs unexpectedly, C2E 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 C2E Energy will offset losses from the drop in C2E Energy's long position.| New Generation vs. Xtra Energy Corp | New Generation vs. Arsenal Digital Holdings | New Generation vs. UHF Logistics Group | New Generation vs. XCana Petroleum |
| C2E Energy vs. Manaris Corp | C2E Energy vs. Green Planet Bio | C2E Energy vs. Continental Beverage Brands | C2E Energy vs. Opus Magnum Ameris |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |