Correlation Between Pennexx Foods and C3 Ai

Can any of the company-specific risk be diversified away by investing in both Pennexx Foods and C3 Ai 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 Pennexx Foods and C3 Ai into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pennexx Foods and C3 Ai Inc, you can compare the effects of market volatilities on Pennexx Foods and C3 Ai 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 Pennexx Foods with a short position of C3 Ai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pennexx Foods and C3 Ai.

Diversification Opportunities for Pennexx Foods and C3 Ai

-0.62

Correlation Coefficient

Pennexx Foods  C3 Ai

Excellent diversification

The 3 months correlation between Pennexx and C3 Ai is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pennexx Foods and C3 Ai Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3 Ai Inc and Pennexx Foods 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 Pennexx Foods are associated (or correlated) with C3 Ai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3 Ai Inc has no effect on the direction of Pennexx Foods i.e., Pennexx Foods and C3 Ai go up and down completely randomly.

Pair Corralation between Pennexx Foods and C3 Ai

Given the investment horizon of 90 days Pennexx Foods is expected to generate 9.02 times less return on investment than C3 Ai. In addition to that, Pennexx Foods is 1.41 times more volatile than C3 Ai Inc. It trades about 0.0 of its total potential returns per unit of risk. C3 Ai Inc is currently generating about 0.06 per unit of volatility. If you would invest  1,354  in C3 Ai Inc on October 11, 2024 and sell it today you would earn a total of  1,976  from holding C3 Ai Inc or generate 145.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Pennexx Foods  vs.  C3 Ai Inc

Pennexx Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pennexx Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Pennexx Foods is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

C3 Ai Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in C3 Ai Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, C3 Ai demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pennexx Foods and C3 Ai

The main advantage of trading using opposite Pennexx Foods and C3 Ai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pennexx Foods position performs unexpectedly, C3 Ai 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 C3 Ai will offset losses from the drop in C3 Ai's long position.

The idea behind Pennexx Foods and C3 Ai Inc 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.