Correlation Between Clearfield and PowerFleet,

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

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

Diversification Opportunities for Clearfield and PowerFleet,

-0.72

Correlation Coefficient

Clearfield  PowerFleet,

Pay attention - limited upside

The 3 months correlation between Clearfield and PowerFleet, is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Clearfield and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and Clearfield 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 Clearfield are associated (or correlated) with PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of Clearfield i.e., Clearfield and PowerFleet, go up and down completely randomly.

Pair Corralation between Clearfield and PowerFleet,

Given the investment horizon of 90 days Clearfield is expected to generate 0.5 times more return on investment than PowerFleet,. However, Clearfield is 1.99 times less risky than PowerFleet,. It trades about 0.6 of its potential returns per unit of risk. PowerFleet, is currently generating about -0.07 per unit of risk. If you would invest  3,011  in Clearfield on October 21, 2024 and sell it today you would earn a total of  826.00  from holding Clearfield or generate 27.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Clearfield  vs.  PowerFleet,

Clearfield

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Clearfield are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Clearfield is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

PowerFleet,

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, PowerFleet, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Clearfield and PowerFleet,

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

The idea behind Clearfield and PowerFleet, 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.