Correlation Between Clean Energy and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both Clean Energy and SANOK RUBBER 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 SANOK RUBBER 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 SANOK RUBBER ZY, you can compare the effects of market volatilities on Clean Energy and SANOK RUBBER 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 SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and SANOK RUBBER.
Diversification Opportunities for Clean Energy and SANOK RUBBER
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clean and SANOK is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY 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 SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of Clean Energy i.e., Clean Energy and SANOK RUBBER go up and down completely randomly.
Pair Corralation between Clean Energy and SANOK RUBBER
Assuming the 90 days horizon Clean Energy Fuels is expected to under-perform the SANOK RUBBER. In addition to that, Clean Energy is 4.2 times more volatile than SANOK RUBBER ZY. It trades about -0.06 of its total potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.27 per unit of volatility. If you would invest 434.00 in SANOK RUBBER ZY on September 25, 2024 and sell it today you would earn a total of 21.00 from holding SANOK RUBBER ZY or generate 4.84% 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. SANOK RUBBER ZY
Performance |
| Timeline |
| Clean Energy Fuels |
| SANOK RUBBER ZY |
Clean Energy and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and SANOK RUBBER
The main advantage of trading using opposite Clean Energy and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| Clean Energy vs. SCANSOURCE | Clean Energy vs. United Breweries Co | Clean Energy vs. The Boston Beer | Clean Energy vs. TRADEDOUBLER AB SK |
| SANOK RUBBER vs. Dno ASA | SANOK RUBBER vs. DENSO P ADR | SANOK RUBBER vs. Aptiv PLC | SANOK RUBBER vs. PT Astra International |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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