Correlation Between Capital Clean and MBGGR

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

By analyzing existing cross correlation between Capital Clean Energy and MBGGR 35 03 AUG 25, you can compare the effects of market volatilities on Capital Clean and MBGGR 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 Capital Clean with a short position of MBGGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and MBGGR.

Diversification Opportunities for Capital Clean and MBGGR

-0.61

Correlation Coefficient

Capital Clean  MBGGR

Excellent diversification

The 3 months correlation between Capital and MBGGR is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and MBGGR 35 03 AUG 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBGGR 35 03 and Capital Clean 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 Capital Clean Energy are associated (or correlated) with MBGGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBGGR 35 03 has no effect on the direction of Capital Clean i.e., Capital Clean and MBGGR go up and down completely randomly.

Pair Corralation between Capital Clean and MBGGR

Given the investment horizon of 90 days Capital Clean Energy is expected to generate 2.41 times more return on investment than MBGGR. However, Capital Clean is 2.41 times more volatile than MBGGR 35 03 AUG 25. It trades about 0.0 of its potential returns per unit of risk. MBGGR 35 03 AUG 25 is currently generating about -0.22 per unit of risk. If you would invest  1,892  in Capital Clean Energy on October 23, 2024 and sell it today you would lose (17.00) from holding Capital Clean Energy or give up 0.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	28.33%
Values	Daily Returns

Capital Clean Energy  vs.  MBGGR 35 03 AUG 25

Capital Clean Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Capital Clean Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Capital Clean is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

MBGGR 35 03

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MBGGR 35 03 AUG 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for MBGGR 35 03 AUG 25 investors.

Pair Trading with Capital Clean and MBGGR

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

The idea behind Capital Clean Energy and MBGGR 35 03 AUG 25 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.