Correlation Between Cleantech Power and Capital Clean
Can any of the company-specific risk be diversified away by investing in both Cleantech Power and Capital Clean 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 Capital Clean 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 Capital Clean Energy, you can compare the effects of market volatilities on Cleantech Power and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and Capital Clean.
Diversification Opportunities for Cleantech Power and Capital Clean
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of Cleantech Power i.e., Cleantech Power and Capital Clean go up and down completely randomly.
Pair Corralation between Cleantech Power and Capital Clean
If you would invest 1,849 in Capital Clean Energy on October 21, 2024 and sell it today you would earn a total of 26.00 from holding Capital Clean Energy or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleantech Power Corp vs. Capital Clean Energy
Performance |
| Timeline |
| Cleantech Power Corp |
| Capital Clean Energy |
Cleantech Power and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleantech Power and Capital Clean
The main advantage of trading using opposite Cleantech Power and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.| Cleantech Power vs. Parker Hannifin | Cleantech Power vs. Mangazeya Mining | Cleantech Power vs. Emerson Electric | Cleantech Power vs. Jacobs Solutions |
| Capital Clean vs. Fidus Investment Corp | Capital Clean vs. BRC Inc | Capital Clean vs. Gladstone Investment | Capital Clean vs. National Waste Management |
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 Stocks Directory module to find actively traded stocks across global markets.
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