Correlation Between STORE and Capital Clean
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By analyzing existing cross correlation between STORE CAP P and Capital Clean Energy, you can compare the effects of market volatilities on STORE 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 STORE with a short position of Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of STORE and Capital Clean.
Diversification Opportunities for STORE and Capital Clean
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between STORE and Capital is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding STORE CAP P 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 STORE 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 STORE CAP P 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 STORE i.e., STORE and Capital Clean go up and down completely randomly.
Pair Corralation between STORE and Capital Clean
Assuming the 90 days trading horizon STORE CAP P is expected to under-perform the Capital Clean. In addition to that, STORE is 1.73 times more volatile than Capital Clean Energy. It trades about -0.25 of its total potential returns per unit of risk. Capital Clean Energy is currently generating about 0.0 per unit of volatility. If you would invest 1,846 in Capital Clean Energy on September 5, 2024 and sell it today you would lose (3.00) from holding Capital Clean Energy or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
STORE CAP P vs. Capital Clean Energy
Performance |
| Timeline |
| STORE CAP P |
| Capital Clean Energy |
STORE and Capital Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STORE and Capital Clean
The main advantage of trading using opposite STORE and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STORE 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.| STORE vs. Catalyst Pharmaceuticals | STORE vs. Casio Computer Co | STORE vs. Paysafe | STORE vs. Tscan Therapeutics |
| Capital Clean vs. Natural Alternatives International | Capital Clean vs. Where Food Comes | Capital Clean vs. SunOpta | Capital Clean vs. Asbury Automotive Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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