Correlation Between Clear Blue and Go Solar

Can any of the company-specific risk be diversified away by investing in both Clear Blue and Go Solar 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 Clear Blue and Go Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Clear Blue and Go Solar

0.0

Correlation Coefficient

Clear Blue  Go Solar

Pay attention - limited upside

The 3 months correlation between Clear and GSLO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clear Blue Technologies and Go Solar USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Go Solar USA and Clear Blue 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 Clear Blue Technologies are associated (or correlated) with Go Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Go Solar USA has no effect on the direction of Clear Blue i.e., Clear Blue and Go Solar go up and down completely randomly.

Pair Corralation between Clear Blue and Go Solar

Assuming the 90 days horizon Clear Blue is expected to generate 120.45 times less return on investment than Go Solar. But when comparing it to its historical volatility, Clear Blue Technologies is 21.54 times less risky than Go Solar. It trades about 0.02 of its potential returns per unit of risk. Go Solar USA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Go Solar USA on December 26, 2024 and sell it today you would earn a total of  0.00  from holding Go Solar USA or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Clear Blue Technologies  vs.  Go Solar USA

Clear Blue Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Clear Blue Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Clear Blue may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Go Solar USA

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Go Solar USA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Go Solar displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Clear Blue and Go Solar

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

The idea behind Clear Blue Technologies and Go Solar USA 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.

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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.