Correlation Between Clean Energy and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both Clean Energy and COFCO Joycome 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 COFCO Joycome 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 COFCO Joycome Foods, you can compare the effects of market volatilities on Clean Energy and COFCO Joycome 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 COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and COFCO Joycome.
Diversification Opportunities for Clean Energy and COFCO Joycome
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clean and COFCO is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods 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 COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of Clean Energy i.e., Clean Energy and COFCO Joycome go up and down completely randomly.
Pair Corralation between Clean Energy and COFCO Joycome
Assuming the 90 days horizon Clean Energy Fuels is expected to generate 1.07 times more return on investment than COFCO Joycome. However, Clean Energy is 1.07 times more volatile than COFCO Joycome Foods. It trades about -0.01 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about -0.01 per unit of risk. If you would invest 509.00 in Clean Energy Fuels on October 13, 2024 and sell it today you would lose (218.00) from holding Clean Energy Fuels or give up 42.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Clean Energy Fuels vs. COFCO Joycome Foods
Performance |
| Timeline |
| Clean Energy Fuels |
| COFCO Joycome Foods |
Clean Energy and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and COFCO Joycome
The main advantage of trading using opposite Clean Energy and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| Clean Energy vs. UPDATE SOFTWARE | Clean Energy vs. Goosehead Insurance | Clean Energy vs. Vishay Intertechnology | Clean Energy vs. INSURANCE AUST GRP |
| COFCO Joycome vs. Clean Energy Fuels | COFCO Joycome vs. IMAGIN MEDICAL INC | COFCO Joycome vs. ULTRA CLEAN HLDGS | COFCO Joycome vs. CVR Medical Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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