Correlation Between Clean Energy and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Clean Energy and ALBIS LEASING 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 ALBIS LEASING 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 ALBIS LEASING AG, you can compare the effects of market volatilities on Clean Energy and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and ALBIS LEASING.
Diversification Opportunities for Clean Energy and ALBIS LEASING
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clean and ALBIS is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Clean Energy i.e., Clean Energy and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Clean Energy and ALBIS LEASING
Assuming the 90 days horizon Clean Energy Fuels is expected to generate 3.49 times more return on investment than ALBIS LEASING. However, Clean Energy is 3.49 times more volatile than ALBIS LEASING AG. It trades about 0.2 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about -0.07 per unit of risk. If you would invest 246.00 in Clean Energy Fuels on October 24, 2024 and sell it today you would earn a total of 30.00 from holding Clean Energy Fuels or generate 12.2% 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. ALBIS LEASING AG
Performance |
| Timeline |
| Clean Energy Fuels |
| ALBIS LEASING AG |
Clean Energy and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and ALBIS LEASING
The main advantage of trading using opposite Clean Energy and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Clean Energy vs. Beazer Homes USA | Clean Energy vs. CITY OFFICE REIT | Clean Energy vs. PKSHA TECHNOLOGY INC | Clean Energy vs. VELA TECHNOLPLC LS 0001 |
| ALBIS LEASING vs. Molson Coors Beverage | ALBIS LEASING vs. Thai Beverage Public | ALBIS LEASING vs. GRUPO CARSO A1 | ALBIS LEASING vs. CarsalesCom |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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