Correlation Between Clean Energy and FRASERS PROPERTY
Can any of the company-specific risk be diversified away by investing in both Clean Energy and FRASERS PROPERTY 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 FRASERS PROPERTY 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 FRASERS PROPERTY, you can compare the effects of market volatilities on Clean Energy and FRASERS PROPERTY 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 FRASERS PROPERTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and FRASERS PROPERTY.
Diversification Opportunities for Clean Energy and FRASERS PROPERTY
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Clean and FRASERS is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and FRASERS PROPERTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRASERS PROPERTY 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 FRASERS PROPERTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRASERS PROPERTY has no effect on the direction of Clean Energy i.e., Clean Energy and FRASERS PROPERTY go up and down completely randomly.
Pair Corralation between Clean Energy and FRASERS PROPERTY
Assuming the 90 days horizon Clean Energy Fuels is expected to under-perform the FRASERS PROPERTY. In addition to that, Clean Energy is 2.11 times more volatile than FRASERS PROPERTY. It trades about 0.0 of its total potential returns per unit of risk. FRASERS PROPERTY is currently generating about 0.05 per unit of volatility. If you would invest 50.00 in FRASERS PROPERTY on September 12, 2024 and sell it today you would earn a total of 14.00 from holding FRASERS PROPERTY or generate 28.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Energy Fuels vs. FRASERS PROPERTY
Performance |
| Timeline |
| Clean Energy Fuels |
| FRASERS PROPERTY |
Clean Energy and FRASERS PROPERTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and FRASERS PROPERTY
The main advantage of trading using opposite Clean Energy and FRASERS PROPERTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, FRASERS PROPERTY 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 FRASERS PROPERTY will offset losses from the drop in FRASERS PROPERTY's long position.| Clean Energy vs. NISSAN CHEMICAL IND | Clean Energy vs. PRECISION DRILLING P | Clean Energy vs. Consolidated Communications Holdings | Clean Energy vs. Nissan Chemical Corp |
| FRASERS PROPERTY vs. OPEN HOUSE GROUP | FRASERS PROPERTY vs. Superior Plus Corp | FRASERS PROPERTY vs. SIVERS SEMICONDUCTORS AB | FRASERS PROPERTY vs. CHINA HUARONG ENERHD 50 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |