Correlation Between Project Energy and Church Crawford

Can any of the company-specific risk be diversified away by investing in both Project 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 Project 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 Project Energy Reimagined and Church Crawford, you can compare the effects of market volatilities on Project 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 Project Energy with a short position of Church Crawford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Project Energy and Church Crawford.

Diversification Opportunities for Project Energy and Church Crawford

-0.11

Correlation Coefficient

Project Energy  Church Crawford

Good diversification

The 3 months correlation between Project and Church is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Project Energy Reimagined and Church Crawford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Crawford and Project 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 Project Energy Reimagined 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 Project Energy i.e., Project Energy and Church Crawford go up and down completely randomly.

Pair Corralation between Project Energy and Church Crawford

If you would invest  0.14  in Church Crawford on October 24, 2024 and sell it today you would earn a total of  0.04  from holding Church Crawford or generate 28.57% return on investment over 90 days.

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

Project Energy Reimagined  vs.  Church Crawford

Project Energy Reimagined

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Project Energy Reimagined has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Project Energy is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Church Crawford

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Church Crawford are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Church Crawford reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Project Energy and Church Crawford

The main advantage of trading using opposite Project Energy and Church Crawford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Project 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 Project Energy Reimagined 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.