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

If you would invest  1.50  in Clear Blue Technologies on December 5, 2024 and sell it today you would earn a total of  0.44  from holding Clear Blue Technologies or generate 29.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	92.06%
Values	Daily Returns

Clear Blue Technologies  vs.  Go Solar USA

Clear Blue Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clear Blue Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Clear Blue reported solid returns over the last few months and may actually be approaching a breakup point.

Go Solar USA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Go Solar USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Go Solar is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..