Correlation Between Icahn and Capital Clean
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By analyzing existing cross correlation between Icahn Enterprises 625 and Capital Clean Energy, you can compare the effects of market volatilities on Icahn and Capital Clean 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 Icahn with a short position of Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icahn and Capital Clean.
Diversification Opportunities for Icahn and Capital Clean
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Icahn and Capital is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Icahn Enterprises 625 and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy and Icahn 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 Icahn Enterprises 625 are associated (or correlated) with Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of Icahn i.e., Icahn and Capital Clean go up and down completely randomly.
Pair Corralation between Icahn and Capital Clean
Assuming the 90 days trading horizon Icahn Enterprises 625 is expected to under-perform the Capital Clean. But the bond apears to be less risky and, when comparing its historical volatility, Icahn Enterprises 625 is 1.34 times less risky than Capital Clean. The bond trades about -0.09 of its potential returns per unit of risk. The Capital Clean Energy is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,831 in Capital Clean Energy on September 2, 2024 and sell it today you would lose (1.00) from holding Capital Clean Energy or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icahn Enterprises 625 vs. Capital Clean Energy
Performance |
| Timeline |
| Icahn Enterprises 625 |
| Capital Clean Energy |
Icahn and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icahn and Capital Clean
The main advantage of trading using opposite Icahn and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icahn position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.The idea behind Icahn Enterprises 625 and Capital Clean Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Capital Clean vs. Link Real Estate | Capital Clean vs. CapitaLand Investment Limited | Capital Clean vs. American Eagle Outfitters | Capital Clean vs. Crombie Real Estate |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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