Correlation Between Cleantech Power and Femasys
Can any of the company-specific risk be diversified away by investing in both Cleantech Power and Femasys 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 Femasys 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 Femasys, you can compare the effects of market volatilities on Cleantech Power and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and Femasys.
Diversification Opportunities for Cleantech Power and Femasys
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and Femasys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Cleantech Power i.e., Cleantech Power and Femasys go up and down completely randomly.
Pair Corralation between Cleantech Power and Femasys
Assuming the 90 days horizon Cleantech Power Corp is expected to generate 4.42 times more return on investment than Femasys. However, Cleantech Power is 4.42 times more volatile than Femasys. It trades about 0.11 of its potential returns per unit of risk. Femasys is currently generating about 0.05 per unit of risk. If you would invest 1.00 in Cleantech Power Corp on August 31, 2024 and sell it today you would lose (0.41) from holding Cleantech Power Corp or give up 41.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Cleantech Power Corp vs. Femasys
Performance |
| Timeline |
| Cleantech Power Corp |
| Femasys |
Cleantech Power and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleantech Power and Femasys
The main advantage of trading using opposite Cleantech Power and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.| Cleantech Power vs. Legacy Education | Cleantech Power vs. Apple Inc | Cleantech Power vs. NVIDIA | Cleantech Power vs. Microsoft |
| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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