Correlation Between CLEAN ENERGY and Khiron Life
Can any of the company-specific risk be diversified away by investing in both CLEAN ENERGY and Khiron Life 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 CLEAN ENERGY and Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CLEAN ENERGY FUELS and Khiron Life Sciences, you can compare the effects of market volatilities on CLEAN ENERGY and Khiron Life 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 CLEAN ENERGY with a short position of Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLEAN ENERGY and Khiron Life.
Diversification Opportunities for CLEAN ENERGY and Khiron Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CLEAN and Khiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CLEAN ENERGY FUELS and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences and CLEAN 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 CLEAN ENERGY FUELS are associated (or correlated) with Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of CLEAN ENERGY i.e., CLEAN ENERGY and Khiron Life go up and down completely randomly.
Pair Corralation between CLEAN ENERGY and Khiron Life
Assuming the 90 days trading horizon CLEAN ENERGY FUELS is expected to generate 0.95 times more return on investment than Khiron Life. However, CLEAN ENERGY FUELS is 1.05 times less risky than Khiron Life. It trades about -0.02 of its potential returns per unit of risk. Khiron Life Sciences is currently generating about -0.04 per unit of risk. If you would invest 519.00 in CLEAN ENERGY FUELS on October 16, 2024 and sell it today you would lose (253.00) from holding CLEAN ENERGY FUELS or give up 48.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CLEAN ENERGY FUELS vs. Khiron Life Sciences
Performance |
| Timeline |
| CLEAN ENERGY FUELS |
| Khiron Life Sciences |
CLEAN ENERGY and Khiron Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLEAN ENERGY and Khiron Life
The main advantage of trading using opposite CLEAN ENERGY and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLEAN ENERGY position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.| CLEAN ENERGY vs. Apple Inc | CLEAN ENERGY vs. Apple Inc | CLEAN ENERGY vs. Apple Inc | CLEAN ENERGY vs. Apple Inc |
| Khiron Life vs. CLEAN ENERGY FUELS | Khiron Life vs. Goosehead Insurance | Khiron Life vs. MCEWEN MINING INC | Khiron Life vs. GREENX METALS LTD |
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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