Correlation Between Cleen Energy and Warimpex Finanz

Can any of the company-specific risk be diversified away by investing in both Cleen Energy and Warimpex Finanz 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 Cleen Energy and Warimpex Finanz into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cleen Energy AG and Warimpex Finanz und, you can compare the effects of market volatilities on Cleen Energy and Warimpex Finanz 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 Cleen Energy with a short position of Warimpex Finanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleen Energy and Warimpex Finanz.

Diversification Opportunities for Cleen Energy and Warimpex Finanz

-0.03

Correlation Coefficient

Cleen Energy  Warimpex Finanz

Good diversification

The 3 months correlation between Cleen and Warimpex is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cleen Energy AG and Warimpex Finanz und in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warimpex Finanz und and Cleen 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 Cleen Energy AG are associated (or correlated) with Warimpex Finanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warimpex Finanz und has no effect on the direction of Cleen Energy i.e., Cleen Energy and Warimpex Finanz go up and down completely randomly.

Pair Corralation between Cleen Energy and Warimpex Finanz

Assuming the 90 days trading horizon Cleen Energy AG is expected to under-perform the Warimpex Finanz. In addition to that, Cleen Energy is 2.23 times more volatile than Warimpex Finanz und. It trades about -0.05 of its total potential returns per unit of risk. Warimpex Finanz und is currently generating about -0.01 per unit of volatility. If you would invest  65.00  in Warimpex Finanz und on September 13, 2024 and sell it today you would lose (5.00) from holding Warimpex Finanz und or give up 7.69% of portfolio value over 90 days.

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

Cleen Energy AG  vs.  Warimpex Finanz und

Cleen Energy AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cleen Energy AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Warimpex Finanz und

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Warimpex Finanz und has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Warimpex Finanz is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Cleen Energy and Warimpex Finanz

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

The idea behind Cleen Energy AG and Warimpex Finanz und 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.