Correlation Between Real Goods and Cadus
Can any of the company-specific risk be diversified away by investing in both Real Goods and Cadus 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 Real Goods and Cadus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Goods Solar and Cadus, you can compare the effects of market volatilities on Real Goods and Cadus 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 Real Goods with a short position of Cadus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Goods and Cadus.
Diversification Opportunities for Real Goods and Cadus
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Real and Cadus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Real Goods Solar and Cadus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadus and Real Goods 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 Real Goods Solar are associated (or correlated) with Cadus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadus has no effect on the direction of Real Goods i.e., Real Goods and Cadus go up and down completely randomly.
Pair Corralation between Real Goods and Cadus
If you would invest (100.00) in Cadus on December 30, 2023 and sell it today you would earn a total of 100.00 from holding Cadus or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Real Goods Solar vs. Cadus
Performance |
Timeline |
Real Goods Solar |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Cadus |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Real Goods and Cadus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Real Goods and Cadus
The main advantage of trading using opposite Real Goods and Cadus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Goods position performs unexpectedly, Cadus 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 Cadus will offset losses from the drop in Cadus' long position.Real Goods vs. Datadog | Real Goods vs. United Rentals | Real Goods vs. Alta Equipment Group | Real Goods vs. Nextplat Corp |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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