Correlation Between Tantalus Systems and CBAK Energy

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

By analyzing existing cross correlation between Tantalus Systems Holding and CBAK Energy Technology, you can compare the effects of market volatilities on Tantalus Systems and CBAK 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 Tantalus Systems with a short position of CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tantalus Systems and CBAK Energy.

Diversification Opportunities for Tantalus Systems and CBAK Energy

-0.59

Correlation Coefficient

Tantalus Systems  CBAK Energy

Excellent diversification

The 3 months correlation between Tantalus and CBAK is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tantalus Systems Holding and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology and Tantalus Systems 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 Tantalus Systems Holding are associated (or correlated) with CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of Tantalus Systems i.e., Tantalus Systems and CBAK Energy go up and down completely randomly.

Pair Corralation between Tantalus Systems and CBAK Energy

Assuming the 90 days horizon Tantalus Systems Holding is expected to generate 0.37 times more return on investment than CBAK Energy. However, Tantalus Systems Holding is 2.68 times less risky than CBAK Energy. It trades about 0.15 of its potential returns per unit of risk. CBAK Energy Technology is currently generating about 0.01 per unit of risk. If you would invest  109.00  in Tantalus Systems Holding on September 14, 2024 and sell it today you would earn a total of  17.00  from holding Tantalus Systems Holding or generate 15.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Tantalus Systems Holding  vs.  CBAK Energy Technology

Tantalus Systems Holding

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tantalus Systems Holding are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, Tantalus Systems reported solid returns over the last few months and may actually be approaching a breakup point.

CBAK Energy Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CBAK Energy Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CBAK Energy is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Tantalus Systems and CBAK Energy

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

The idea behind Tantalus Systems Holding and CBAK Energy Technology 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.