Correlation Between CLEAN ENERGY and CSSC Offshore
Can any of the company-specific risk be diversified away by investing in both CLEAN ENERGY and CSSC Offshore 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 CSSC Offshore 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 CSSC Offshore Marine, you can compare the effects of market volatilities on CLEAN ENERGY and CSSC Offshore 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 CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLEAN ENERGY and CSSC Offshore.
Diversification Opportunities for CLEAN ENERGY and CSSC Offshore
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between CLEAN and CSSC is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CLEAN ENERGY FUELS and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of CLEAN ENERGY i.e., CLEAN ENERGY and CSSC Offshore go up and down completely randomly.
Pair Corralation between CLEAN ENERGY and CSSC Offshore
Assuming the 90 days trading horizon CLEAN ENERGY FUELS is expected to generate 1.27 times more return on investment than CSSC Offshore. However, CLEAN ENERGY is 1.27 times more volatile than CSSC Offshore Marine. It trades about 0.01 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.09 per unit of risk. If you would invest 290.00 in CLEAN ENERGY FUELS on October 11, 2024 and sell it today you would lose (2.00) from holding CLEAN ENERGY FUELS or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.44% |
| Values | Daily Returns |
CLEAN ENERGY FUELS vs. CSSC Offshore Marine
Performance |
| Timeline |
| CLEAN ENERGY FUELS |
| CSSC Offshore Marine |
CLEAN ENERGY and CSSC Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLEAN ENERGY and CSSC Offshore
The main advantage of trading using opposite CLEAN ENERGY and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLEAN ENERGY position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.| CLEAN ENERGY vs. Reinsurance Group of | CLEAN ENERGY vs. CN MODERN DAIRY | CLEAN ENERGY vs. Direct Line Insurance | CLEAN ENERGY vs. Tyson Foods |
| CSSC Offshore vs. Jacquet Metal Service | CSSC Offshore vs. Canadian Utilities Limited | CSSC Offshore vs. ADRIATIC METALS LS 013355 | CSSC Offshore vs. United Utilities 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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