Correlation Between Clearway Energy and Global Power
Can any of the company-specific risk be diversified away by investing in both Clearway Energy and Global Power 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 Clearway Energy and Global Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearway Energy and Global Power Equipment, you can compare the effects of market volatilities on Clearway Energy and Global Power 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 Clearway Energy with a short position of Global Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearway Energy and Global Power.
Diversification Opportunities for Clearway Energy and Global Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clearway and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Clearway Energy and Global Power Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Power Equipment and Clearway 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 Clearway Energy are associated (or correlated) with Global Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Power Equipment has no effect on the direction of Clearway Energy i.e., Clearway Energy and Global Power go up and down completely randomly.
Pair Corralation between Clearway Energy and Global Power
If you would invest (100.00) in Global Power Equipment on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Global Power Equipment or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Clearway Energy vs. Global Power Equipment
Performance |
| Timeline |
| Clearway Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Power Equipment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Clearway Energy and Global Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearway Energy and Global Power
The main advantage of trading using opposite Clearway Energy and Global Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearway Energy position performs unexpectedly, Global Power 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 Global Power will offset losses from the drop in Global Power's long position.| Clearway Energy vs. The Wendys Co | Clearway Energy vs. Texas Roadhouse | Clearway Energy vs. Village Super Market | Clearway Energy vs. BJs Restaurants |
| Global Power vs. Modine Manufacturing | Global Power vs. Tesla Inc | Global Power vs. Aptiv PLC | Global Power vs. BRP Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |