Correlation Between CN MODERN and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both CN MODERN and Carnegie Clean 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 CN MODERN and Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN MODERN DAIRY and Carnegie Clean Energy, you can compare the effects of market volatilities on CN MODERN and Carnegie Clean 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 CN MODERN with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN MODERN and Carnegie Clean.
Diversification Opportunities for CN MODERN and Carnegie Clean
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between 07M and Carnegie is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding CN MODERN DAIRY and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy and CN MODERN 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 CN MODERN DAIRY are associated (or correlated) with Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of CN MODERN i.e., CN MODERN and Carnegie Clean go up and down completely randomly.
Pair Corralation between CN MODERN and Carnegie Clean
Assuming the 90 days trading horizon CN MODERN DAIRY is expected to generate 0.84 times more return on investment than Carnegie Clean. However, CN MODERN DAIRY is 1.19 times less risky than Carnegie Clean. It trades about 0.08 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about 0.02 per unit of risk. If you would invest 11.00 in CN MODERN DAIRY on December 29, 2024 and sell it today you would earn a total of 2.00 from holding CN MODERN DAIRY or generate 18.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CN MODERN DAIRY vs. Carnegie Clean Energy
Performance |
Timeline |
CN MODERN DAIRY |
Carnegie Clean Energy |
CN MODERN and Carnegie Clean Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CN MODERN and Carnegie Clean
The main advantage of trading using opposite CN MODERN and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN MODERN position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.CN MODERN vs. Eagle Materials | CN MODERN vs. ITALIAN WINE BRANDS | CN MODERN vs. Applied Materials | CN MODERN vs. Ping An Insurance |
Carnegie Clean vs. FIREWEED METALS P | Carnegie Clean vs. Zijin Mining Group | Carnegie Clean vs. New Residential Investment | Carnegie Clean vs. De Grey Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |