Correlation Between Cleantech Power and BAIYU Holdings
Can any of the company-specific risk be diversified away by investing in both Cleantech Power and BAIYU Holdings 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 Cleantech Power and BAIYU Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleantech Power Corp and BAIYU Holdings, you can compare the effects of market volatilities on Cleantech Power and BAIYU Holdings 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 Cleantech Power with a short position of BAIYU Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and BAIYU Holdings.
Diversification Opportunities for Cleantech Power and BAIYU Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and BAIYU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp and BAIYU Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAIYU Holdings and Cleantech Power 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 Cleantech Power Corp are associated (or correlated) with BAIYU Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAIYU Holdings has no effect on the direction of Cleantech Power i.e., Cleantech Power and BAIYU Holdings go up and down completely randomly.
Pair Corralation between Cleantech Power and BAIYU Holdings
If you would invest 0.59 in Cleantech Power Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Cleantech Power Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 69.05% |
| Values | Daily Returns |
Cleantech Power Corp vs. BAIYU Holdings
Performance |
| Timeline |
| Cleantech Power Corp |
| BAIYU Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cleantech Power and BAIYU Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleantech Power and BAIYU Holdings
The main advantage of trading using opposite Cleantech Power and BAIYU Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power position performs unexpectedly, BAIYU Holdings 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 BAIYU Holdings will offset losses from the drop in BAIYU Holdings' long position.| Cleantech Power vs. Fevertree Drinks Plc | Cleantech Power vs. Alvotech | Cleantech Power vs. Merit Medical Systems | Cleantech Power vs. Keurig Dr Pepper |
| BAIYU Holdings vs. Cleantech Power Corp | BAIYU Holdings vs. Lululemon Athletica | BAIYU Holdings vs. Northstar Clean Technologies | BAIYU Holdings vs. Cedar Realty Trust |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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