Correlation Between CurrentC Power and Freight Technologies

Can any of the company-specific risk be diversified away by investing in both CurrentC Power and Freight Technologies 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 CurrentC Power and Freight Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CurrentC Power and Freight Technologies, you can compare the effects of market volatilities on CurrentC Power and Freight Technologies 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 CurrentC Power with a short position of Freight Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and Freight Technologies.

Diversification Opportunities for CurrentC Power and Freight Technologies

-0.33

Correlation Coefficient

CurrentC Power  Freight Technologies

Very good diversification

The 3 months correlation between CurrentC and Freight is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and Freight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freight Technologies and CurrentC Power 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 CurrentC Power are associated (or correlated) with Freight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freight Technologies has no effect on the direction of CurrentC Power i.e., CurrentC Power and Freight Technologies go up and down completely randomly.

Pair Corralation between CurrentC Power and Freight Technologies

Given the investment horizon of 90 days CurrentC Power is expected to generate 3.97 times more return on investment than Freight Technologies. However, CurrentC Power is 3.97 times more volatile than Freight Technologies. It trades about 0.09 of its potential returns per unit of risk. Freight Technologies is currently generating about -0.13 per unit of risk. If you would invest  40.00  in CurrentC Power on October 10, 2024 and sell it today you would lose (19.00) from holding CurrentC Power or give up 47.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.2%
Values	Daily Returns

CurrentC Power  vs.  Freight Technologies

CurrentC Power

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

Freight Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Freight Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, Freight Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with CurrentC Power and Freight Technologies

The main advantage of trading using opposite CurrentC Power and Freight Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurrentC Power position performs unexpectedly, Freight Technologies 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 Freight Technologies will offset losses from the drop in Freight Technologies' long position.

The idea behind CurrentC Power and Freight Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.