Correlation Between PureCycle Technologies and Cambridge Capital
Can any of the company-specific risk be diversified away by investing in both PureCycle Technologies and Cambridge Capital 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 PureCycle Technologies and Cambridge Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PureCycle Technologies and Cambridge Capital Holdings, you can compare the effects of market volatilities on PureCycle Technologies and Cambridge Capital 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 PureCycle Technologies with a short position of Cambridge Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureCycle Technologies and Cambridge Capital.
Diversification Opportunities for PureCycle Technologies and Cambridge Capital
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PureCycle and Cambridge is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PureCycle Technologies and Cambridge Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Capital and PureCycle Technologies 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 PureCycle Technologies are associated (or correlated) with Cambridge Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Capital has no effect on the direction of PureCycle Technologies i.e., PureCycle Technologies and Cambridge Capital go up and down completely randomly.
Pair Corralation between PureCycle Technologies and Cambridge Capital
Assuming the 90 days horizon PureCycle Technologies is expected to generate 8.27 times more return on investment than Cambridge Capital. However, PureCycle Technologies is 8.27 times more volatile than Cambridge Capital Holdings. It trades about 0.08 of its potential returns per unit of risk. Cambridge Capital Holdings is currently generating about 0.1 per unit of risk. If you would invest 125.00 in PureCycle Technologies on November 28, 2024 and sell it today you would earn a total of 159.00 from holding PureCycle Technologies or generate 127.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.68% |
| Values | Daily Returns |
PureCycle Technologies vs. Cambridge Capital Holdings
Performance |
| Timeline |
| PureCycle Technologies |
| Cambridge Capital |
PureCycle Technologies and Cambridge Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PureCycle Technologies and Cambridge Capital
The main advantage of trading using opposite PureCycle Technologies and Cambridge Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureCycle Technologies position performs unexpectedly, Cambridge Capital 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 Cambridge Capital will offset losses from the drop in Cambridge Capital's long position.| PureCycle Technologies vs. Origin Materials Warrant | PureCycle Technologies vs. Purecycle Technologies Holdings | PureCycle Technologies vs. Blade Air Mobility |
| Cambridge Capital vs. Edison Cobalt Corp | Cambridge Capital vs. Champion Bear Resources | Cambridge Capital vs. Avarone Metals | Cambridge Capital vs. Adriatic Metals PLC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |