Correlation Between Clene and Clever Leaves

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

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

Diversification Opportunities for Clene and Clever Leaves

0.0

Correlation Coefficient

Clene  Clever Leaves

Pay attention - limited upside

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

Pair Corralation between Clene and Clever Leaves

If you would invest  4.59  in Clene Inc on November 19, 2024 and sell it today you would lose (0.29) from holding Clene Inc or give up 6.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Clene Inc  vs.  Clever Leaves Holdings

Clene Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Clene Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Clene showed solid returns over the last few months and may actually be approaching a breakup point.

Clever Leaves Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clever Leaves Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Clever Leaves is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Clene and Clever Leaves

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

The idea behind Clene Inc and Clever Leaves Holdings 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.