Correlation Between BTU Metals and Cleantech Power
Can any of the company-specific risk be diversified away by investing in both BTU Metals and Cleantech Power 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 BTU Metals and Cleantech Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTU Metals Corp and Cleantech Power Corp, you can compare the effects of market volatilities on BTU Metals and Cleantech Power 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 BTU Metals with a short position of Cleantech Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTU Metals and Cleantech Power.
Diversification Opportunities for BTU Metals and Cleantech Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTU and Cleantech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BTU Metals Corp and Cleantech Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleantech Power Corp and BTU Metals 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 BTU Metals Corp are associated (or correlated) with Cleantech Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleantech Power Corp has no effect on the direction of BTU Metals i.e., BTU Metals and Cleantech Power go up and down completely randomly.
Pair Corralation between BTU Metals and Cleantech Power
If you would invest 0.59 in Cleantech Power Corp on October 27, 2024 and sell it today you would earn a total of 0.00 from holding Cleantech Power Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
BTU Metals Corp vs. Cleantech Power Corp
Performance |
Timeline |
BTU Metals Corp |
Cleantech Power Corp |
BTU Metals and Cleantech Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BTU Metals and Cleantech Power
The main advantage of trading using opposite BTU Metals and Cleantech Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTU Metals position performs unexpectedly, Cleantech Power 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 Cleantech Power will offset losses from the drop in Cleantech Power's long position.BTU Metals vs. Denison Mines Corp | BTU Metals vs. Hunter Creek Mining | BTU Metals vs. Kuya Silver | BTU Metals vs. Snap On |
Cleantech Power vs. Lincoln Electric Holdings | Cleantech Power vs. Uber Technologies | Cleantech Power vs. Edgewell Personal Care | Cleantech Power vs. Western Digital |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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