Correlation Between CLEAN ENERGY and TELE2 B
Can any of the company-specific risk be diversified away by investing in both CLEAN ENERGY and TELE2 B 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 TELE2 B 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 TELE2 B , you can compare the effects of market volatilities on CLEAN ENERGY and TELE2 B 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 TELE2 B. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLEAN ENERGY and TELE2 B.
Diversification Opportunities for CLEAN ENERGY and TELE2 B
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between CLEAN and TELE2 is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CLEAN ENERGY FUELS and TELE2 B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELE2 B 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 TELE2 B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELE2 B has no effect on the direction of CLEAN ENERGY i.e., CLEAN ENERGY and TELE2 B go up and down completely randomly.
Pair Corralation between CLEAN ENERGY and TELE2 B
Assuming the 90 days trading horizon CLEAN ENERGY FUELS is expected to generate 2.89 times more return on investment than TELE2 B. However, CLEAN ENERGY is 2.89 times more volatile than TELE2 B . It trades about 0.05 of its potential returns per unit of risk. TELE2 B is currently generating about 0.01 per unit of risk. If you would invest 267.00 in CLEAN ENERGY FUELS on October 28, 2024 and sell it today you would earn a total of 14.00 from holding CLEAN ENERGY FUELS or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CLEAN ENERGY FUELS vs. TELE2 B
Performance |
| Timeline |
| CLEAN ENERGY FUELS |
| TELE2 B |
CLEAN ENERGY and TELE2 B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLEAN ENERGY and TELE2 B
The main advantage of trading using opposite CLEAN ENERGY and TELE2 B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLEAN ENERGY position performs unexpectedly, TELE2 B 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 TELE2 B will offset losses from the drop in TELE2 B's long position.| CLEAN ENERGY vs. PLANT VEDA FOODS | CLEAN ENERGY vs. Japan Post Insurance | CLEAN ENERGY vs. PURE FOODS TASMANIA | CLEAN ENERGY vs. SBI Insurance Group |
| TELE2 B vs. Fortescue Metals Group | TELE2 B vs. Nippon Light Metal | TELE2 B vs. DAIDO METAL TD | TELE2 B vs. Micron Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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