Correlation Between OriginClear and Anaergia

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

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

Diversification Opportunities for OriginClear and Anaergia

-0.28

Correlation Coefficient

OriginClear  Anaergia

Very good diversification

The 3 months correlation between OriginClear and Anaergia is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding OriginClear and Anaergia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anaergia and OriginClear 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 OriginClear are associated (or correlated) with Anaergia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anaergia has no effect on the direction of OriginClear i.e., OriginClear and Anaergia go up and down completely randomly.

Pair Corralation between OriginClear and Anaergia

Given the investment horizon of 90 days OriginClear is expected to under-perform the Anaergia. In addition to that, OriginClear is 1.61 times more volatile than Anaergia. It trades about -0.02 of its total potential returns per unit of risk. Anaergia is currently generating about 0.06 per unit of volatility. If you would invest  68.00  in Anaergia on November 28, 2024 and sell it today you would earn a total of  7.00  from holding Anaergia or generate 10.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.67%
Values	Daily Returns

OriginClear  vs.  Anaergia

OriginClear

Risk-Adjusted Performance

Very Weak

Over the last 90 days OriginClear has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Anaergia

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anaergia are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Anaergia reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OriginClear and Anaergia

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

The idea behind OriginClear and Anaergia 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.