Correlation Between Thermal Energy and Pacific Green
Can any of the company-specific risk be diversified away by investing in both Thermal Energy and Pacific Green 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 Thermal Energy and Pacific Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermal Energy International and Pacific Green Technologies, you can compare the effects of market volatilities on Thermal Energy and Pacific Green 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 Thermal Energy with a short position of Pacific Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermal Energy and Pacific Green.
Diversification Opportunities for Thermal Energy and Pacific Green
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Thermal and Pacific is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Thermal Energy International and Pacific Green Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Green Techno and Thermal Energy 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 Thermal Energy International are associated (or correlated) with Pacific Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Green Techno has no effect on the direction of Thermal Energy i.e., Thermal Energy and Pacific Green go up and down completely randomly.
Pair Corralation between Thermal Energy and Pacific Green
Assuming the 90 days horizon Thermal Energy International is expected to generate 0.77 times more return on investment than Pacific Green. However, Thermal Energy International is 1.31 times less risky than Pacific Green. It trades about 0.05 of its potential returns per unit of risk. Pacific Green Technologies is currently generating about 0.03 per unit of risk. If you would invest 8.20 in Thermal Energy International on September 5, 2024 and sell it today you would earn a total of 5.80 from holding Thermal Energy International or generate 70.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermal Energy International vs. Pacific Green Technologies
Performance |
| Timeline |
| Thermal Energy Inter |
| Pacific Green Techno |
Thermal Energy and Pacific Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermal Energy and Pacific Green
The main advantage of trading using opposite Thermal Energy and Pacific Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermal Energy position performs unexpectedly, Pacific Green 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 Pacific Green will offset losses from the drop in Pacific Green's long position.| Thermal Energy vs. QYOU Media | Thermal Energy vs. LeanLife Health | Thermal Energy vs. Prime Meridian Holding | Thermal Energy vs. TrackX Holdings |
| Pacific Green vs. Vow ASA | Pacific Green vs. Eestech | Pacific Green vs. Energy and Water | Pacific Green vs. One World Universe |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |