Correlation Between POTOMAC and Cleantech Power
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By analyzing existing cross correlation between POTOMAC ELEC PWR and Cleantech Power Corp, you can compare the effects of market volatilities on POTOMAC and Cleantech Power 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 POTOMAC with a short position of Cleantech Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of POTOMAC and Cleantech Power.
Diversification Opportunities for POTOMAC and Cleantech Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between POTOMAC and Cleantech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding POTOMAC ELEC PWR and Cleantech Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleantech Power Corp and POTOMAC 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 POTOMAC ELEC PWR are associated (or correlated) with Cleantech Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleantech Power Corp has no effect on the direction of POTOMAC i.e., POTOMAC and Cleantech Power go up and down completely randomly.
Pair Corralation between POTOMAC and Cleantech Power
If you would invest 8,330 in POTOMAC ELEC PWR on November 28, 2024 and sell it today you would earn a total of 434.00 from holding POTOMAC ELEC PWR or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
POTOMAC ELEC PWR vs. Cleantech Power Corp
Performance |
| Timeline |
| POTOMAC ELEC PWR |
| Cleantech Power Corp |
POTOMAC and Cleantech Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POTOMAC and Cleantech Power
The main advantage of trading using opposite POTOMAC and Cleantech Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POTOMAC position performs unexpectedly, Cleantech Power 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 Cleantech Power will offset losses from the drop in Cleantech Power's long position.| POTOMAC vs. CVR Partners LP | POTOMAC vs. Genuine Parts Co | POTOMAC vs. American Vanguard | POTOMAC vs. MYT Netherlands Parent |
| Cleantech Power vs. Lendlease Global Commercial | Cleantech Power vs. Broadstone Net Lease | Cleantech Power vs. Hertz Global Hldgs | Cleantech Power vs. Aterian |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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