Correlation Between Cleantech Power and Coffee Holding
Can any of the company-specific risk be diversified away by investing in both Cleantech Power and Coffee Holding 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 Coffee Holding 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 Coffee Holding Co, you can compare the effects of market volatilities on Cleantech Power and Coffee Holding 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 Coffee Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleantech Power and Coffee Holding.
Diversification Opportunities for Cleantech Power and Coffee Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cleantech and Coffee is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp and Coffee Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coffee Holding 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 Coffee Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coffee Holding has no effect on the direction of Cleantech Power i.e., Cleantech Power and Coffee Holding go up and down completely randomly.
Pair Corralation between Cleantech Power and Coffee Holding
If you would invest 0.59 in Cleantech Power Corp on November 4, 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 | 100.0% |
| Values | Daily Returns |
Cleantech Power Corp vs. Coffee Holding Co
Performance |
| Timeline |
| Cleantech Power Corp |
| Coffee Holding |
Cleantech Power and Coffee Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleantech Power and Coffee Holding
The main advantage of trading using opposite Cleantech Power and Coffee Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power position performs unexpectedly, Coffee Holding 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 Coffee Holding will offset losses from the drop in Coffee Holding's long position.| Cleantech Power vs. Life360, Common Stock | Cleantech Power vs. Cementos Pacasmayo SAA | Cleantech Power vs. NetSol Technologies | Cleantech Power vs. RBC Bearings Incorporated |
| Coffee Holding vs. Seneca Foods Corp | Coffee Holding vs. J J Snack | Coffee Holding vs. Aryzta AG PK | Coffee Holding vs. Lifeway Foods |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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