Clean Stock Story


USD 8.10  0.53  7.00%   

As many investors are getting excited about energy space, Clean Energy and ALON USA may be going in opposite directions. We are going to discuss some of the competitive aspects of both Clean and ALON USA.
Published over a month ago
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Is Clean riskier than ALON USA PARTNERS (NYSE:ALDW)?

By analyzing existing basic indicators between Clean Energy and ALON USA, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ALON USA with a short position in Clean Energy. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Clean Energy has an asset utilization ratio of 25.55 percent. This indicates that the company is making $0.26 for each dollar of assets. An increasing asset utilization means that Clean Energy Fuels is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Clean or Aemetis is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Clean Energy's Liquidity

Clean Energy financial leverage refers to using borrowed capital as a funding source to finance Clean Energy Fuels ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Clean Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Clean Energy's total debt and its cash.

Correlation Between Clean and Aemetis

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Clean Energy together with similar or unrelated positions with a negative correlation. For example, you can also add Aemetis to your portfolio. If Aemetis is not perfectly correlated to Clean Energy it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Clean Energy for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between CLNE and AMTX for more information.


Are you currently holding both Clean Energy and Aemetis in your portfolio?
Please note if you are using this as a pair-trade strategy between Clean Energy and Aemetis, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Time to exit Clean Energy is now

Latest coefficient of variation indicator falls down to -1050.49. Possible price growth? Clean Energy Fuels exhibits very low volatility with skewness of -0.72 and kurtosis of 2.61. However, we advise investors to further study Clean Energy Fuels technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Clean Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Clean Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Clean Energy Implied Volatility

Clean Energy's implied volatility exposes the market's sentiment of Clean Energy Fuels stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Clean Energy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Clean Energy stock will not fluctuate a lot when Clean Energy's options are near their expiration.

Our Final Perspective on Clean Energy

Although some firms in the oil & gas refining & marketing industry are either recovering or due for a correction, Clean Energy may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Clean valuation and our trade advice on Clean Energy is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Clean Energy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Clean Energy Fuels. Please refer to our Terms of Use for any information regarding our disclosure principles.

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