Correlation Between Danimer Scientific and CN Energy
Can any of the company-specific risk be diversified away by investing in both Danimer Scientific and CN Energy 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 Danimer Scientific and CN Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danimer Scientific and CN Energy Group, you can compare the effects of market volatilities on Danimer Scientific and CN Energy 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 Danimer Scientific with a short position of CN Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danimer Scientific and CN Energy.
Diversification Opportunities for Danimer Scientific and CN Energy
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Danimer and CNEY is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Danimer Scientific and CN Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN Energy Group and Danimer Scientific 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 Danimer Scientific are associated (or correlated) with CN Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN Energy Group has no effect on the direction of Danimer Scientific i.e., Danimer Scientific and CN Energy go up and down completely randomly.
Pair Corralation between Danimer Scientific and CN Energy
Given the investment horizon of 90 days Danimer Scientific is expected to under-perform the CN Energy. But the stock apears to be less risky and, when comparing its historical volatility, Danimer Scientific is 5.4 times less risky than CN Energy. The stock trades about -0.12 of its potential returns per unit of risk. The CN Energy Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 30.00 in CN Energy Group on September 10, 2024 and sell it today you would earn a total of 5.00 from holding CN Energy Group or generate 16.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Danimer Scientific vs. CN Energy Group
Performance |
Timeline |
Danimer Scientific |
CN Energy Group |
Danimer Scientific and CN Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Danimer Scientific and CN Energy
The main advantage of trading using opposite Danimer Scientific and CN Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danimer Scientific position performs unexpectedly, CN Energy 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 CN Energy will offset losses from the drop in CN Energy's long position.Danimer Scientific vs. Cherry Hill Mortgage | Danimer Scientific vs. TIM Participacoes SA | Danimer Scientific vs. Ladder Capital Corp | Danimer Scientific vs. Merck Company |
CN Energy vs. SenesTech | CN Energy vs. Danimer Scientific | CN Energy vs. C Bond Systems | CN Energy vs. Coroware |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |