Correlation Between C2E Energy and Church Crawford

Can any of the company-specific risk be diversified away by investing in both C2E Energy and Church Crawford 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 C2E Energy and Church Crawford into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between C2E Energy and Church Crawford, you can compare the effects of market volatilities on C2E Energy and Church Crawford 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 C2E Energy with a short position of Church Crawford. Check out your portfolio center. Please also check ongoing floating volatility patterns of C2E Energy and Church Crawford.

Diversification Opportunities for C2E Energy and Church Crawford

0.0

Correlation Coefficient

C2E Energy  Church Crawford

Pay attention - limited upside

The 3 months correlation between C2E and Church is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding C2E Energy and Church Crawford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Crawford and C2E Energy 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 C2E Energy are associated (or correlated) with Church Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Crawford has no effect on the direction of C2E Energy i.e., C2E Energy and Church Crawford go up and down completely randomly.

Pair Corralation between C2E Energy and Church Crawford

If you would invest  0.19  in Church Crawford on September 5, 2024 and sell it today you would earn a total of  0.04  from holding Church Crawford or generate 21.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

C2E Energy  vs.  Church Crawford

C2E Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days C2E Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, C2E Energy is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Church Crawford

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Church Crawford are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Church Crawford reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with C2E Energy and Church Crawford

The main advantage of trading using opposite C2E Energy and Church Crawford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C2E Energy position performs unexpectedly, Church Crawford 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 Church Crawford will offset losses from the drop in Church Crawford's long position.

The idea behind C2E Energy and Church Crawford 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.