Correlation Between Cleantech Power and Cohen Circle

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

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

Diversification Opportunities for Cleantech Power and Cohen Circle

-0.05

Correlation Coefficient

Cleantech Power  Cohen Circle

Good diversification

The 3 months correlation between Cleantech and Cohen is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp and Cohen Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Circle Acquisition and Cleantech Power 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 Cleantech Power Corp are associated (or correlated) with Cohen Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Circle Acquisition has no effect on the direction of Cleantech Power i.e., Cleantech Power and Cohen Circle go up and down completely randomly.

Pair Corralation between Cleantech Power and Cohen Circle

Assuming the 90 days horizon Cleantech Power Corp is expected to under-perform the Cohen Circle. But the pink sheet apears to be less risky and, when comparing its historical volatility, Cleantech Power Corp is 7.8 times less risky than Cohen Circle. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Cohen Circle Acquisition is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  27.00  in Cohen Circle Acquisition on September 18, 2024 and sell it today you would earn a total of  17.00  from holding Cohen Circle Acquisition or generate 62.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	19.05%
Values	Daily Returns

Cleantech Power Corp  vs.  Cohen Circle Acquisition

Cleantech Power Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cleantech Power Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic 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.

Cohen Circle Acquisition

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Circle Acquisition are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Cohen Circle showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cleantech Power and Cohen Circle

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

The idea behind Cleantech Power Corp and Cohen Circle Acquisition 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.