Correlation Between Tecogen and CBAK Energy
Can any of the company-specific risk be diversified away by investing in both Tecogen and CBAK Energy 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 Tecogen and CBAK Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecogen and CBAK Energy Technology, you can compare the effects of market volatilities on Tecogen and CBAK Energy 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 Tecogen with a short position of CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecogen and CBAK Energy.
Diversification Opportunities for Tecogen and CBAK Energy
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tecogen and CBAK is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology and Tecogen 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 Tecogen are associated (or correlated) with CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of Tecogen i.e., Tecogen and CBAK Energy go up and down completely randomly.
Pair Corralation between Tecogen and CBAK Energy
If you would invest 107.00 in Tecogen on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Tecogen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Tecogen vs. CBAK Energy Technology
Performance |
| Timeline |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CBAK Energy Technology |
Tecogen and CBAK Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecogen and CBAK Energy
The main advantage of trading using opposite Tecogen and CBAK Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecogen position performs unexpectedly, CBAK Energy 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 CBAK Energy will offset losses from the drop in CBAK Energy's long position.| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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