Correlation Between Cleanaway Waste and Hercules Capital
Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste and Hercules 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 Cleanaway Waste and Hercules Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleanaway Waste Management and Hercules Capital, you can compare the effects of market volatilities on Cleanaway Waste and Hercules 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 Cleanaway Waste with a short position of Hercules Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and Hercules Capital.
Diversification Opportunities for Cleanaway Waste and Hercules Capital
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cleanaway and Hercules is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management and Hercules Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hercules Capital and Cleanaway Waste 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 Cleanaway Waste Management are associated (or correlated) with Hercules Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hercules Capital has no effect on the direction of Cleanaway Waste i.e., Cleanaway Waste and Hercules Capital go up and down completely randomly.
Pair Corralation between Cleanaway Waste and Hercules Capital
Assuming the 90 days trading horizon Cleanaway Waste Management is expected to generate 1.89 times more return on investment than Hercules Capital. However, Cleanaway Waste is 1.89 times more volatile than Hercules Capital. It trades about 0.09 of its potential returns per unit of risk. Hercules Capital is currently generating about 0.12 per unit of risk. If you would invest 157.00 in Cleanaway Waste Management on November 7, 2024 and sell it today you would earn a total of 7.00 from holding Cleanaway Waste Management or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cleanaway Waste Management vs. Hercules Capital
Performance |
| Timeline |
| Cleanaway Waste Mana |
| Hercules Capital |
Cleanaway Waste and Hercules Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleanaway Waste and Hercules Capital
The main advantage of trading using opposite Cleanaway Waste and Hercules Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste position performs unexpectedly, Hercules 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 Hercules Capital will offset losses from the drop in Hercules Capital's long position.| Cleanaway Waste vs. SINGAPORE AIRLINES | Cleanaway Waste vs. AEGEAN AIRLINES | Cleanaway Waste vs. Nok Airlines PCL | Cleanaway Waste vs. International Consolidated Airlines |
| Hercules Capital vs. Salesforce | Hercules Capital vs. SALESFORCE INC CDR | Hercules Capital vs. Lamar Advertising | Hercules Capital vs. THAI BEVERAGE |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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