Correlation Between CVW CleanTech and MASSIN

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

By analyzing existing cross correlation between CVW CleanTech and MASSIN 3067 01 APR 52, you can compare the effects of market volatilities on CVW CleanTech and MASSIN 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 CVW CleanTech with a short position of MASSIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and MASSIN.

Diversification Opportunities for CVW CleanTech and MASSIN

-0.09

Correlation Coefficient

CVW CleanTech  MASSIN

Good diversification

The 3 months correlation between CVW and MASSIN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech and MASSIN 3067 01 APR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MASSIN 3067 01 and CVW CleanTech 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 CVW CleanTech are associated (or correlated) with MASSIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MASSIN 3067 01 has no effect on the direction of CVW CleanTech i.e., CVW CleanTech and MASSIN go up and down completely randomly.

Pair Corralation between CVW CleanTech and MASSIN

Assuming the 90 days horizon CVW CleanTech is expected to under-perform the MASSIN. In addition to that, CVW CleanTech is 1.83 times more volatile than MASSIN 3067 01 APR 52. It trades about -0.09 of its total potential returns per unit of risk. MASSIN 3067 01 APR 52 is currently generating about 0.07 per unit of volatility. If you would invest  7,245  in MASSIN 3067 01 APR 52 on September 28, 2024 and sell it today you would earn a total of  92.00  from holding MASSIN 3067 01 APR 52 or generate 1.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	50.0%
Values	Daily Returns

CVW CleanTech  vs.  MASSIN 3067 01 APR 52

CVW CleanTech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CVW CleanTech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

MASSIN 3067 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MASSIN 3067 01 APR 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MASSIN is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CVW CleanTech and MASSIN

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

The idea behind CVW CleanTech and MASSIN 3067 01 APR 52 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.