Correlation Between ClearSign Combustion and Intevac

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

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

Diversification Opportunities for ClearSign Combustion and Intevac

-0.87

Correlation Coefficient

ClearSign Combustion  Intevac

Pay attention - limited upside

The 3 months correlation between ClearSign and Intevac is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding ClearSign Combustion and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac and ClearSign Combustion 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 ClearSign Combustion are associated (or correlated) with Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of ClearSign Combustion i.e., ClearSign Combustion and Intevac go up and down completely randomly.

Pair Corralation between ClearSign Combustion and Intevac

Given the investment horizon of 90 days ClearSign Combustion is expected to under-perform the Intevac. In addition to that, ClearSign Combustion is 2.02 times more volatile than Intevac. It trades about -0.16 of its total potential returns per unit of risk. Intevac is currently generating about 0.12 per unit of volatility. If you would invest  335.00  in Intevac on December 30, 2024 and sell it today you would earn a total of  65.00  from holding Intevac or generate 19.4% return on investment over 90 days.

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

ClearSign Combustion  vs.  Intevac

ClearSign Combustion

Risk-Adjusted Performance

Very Weak

Over the last 90 days ClearSign Combustion has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Intevac

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intevac are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Intevac exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ClearSign Combustion and Intevac

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

The idea behind ClearSign Combustion and Intevac 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.