Correlation Between PENSKE and Northstar Clean
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By analyzing existing cross correlation between PENSKE 57 01 FEB 28 and Northstar Clean Technologies, you can compare the effects of market volatilities on PENSKE and Northstar Clean 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 PENSKE with a short position of Northstar Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENSKE and Northstar Clean.
Diversification Opportunities for PENSKE and Northstar Clean
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PENSKE and Northstar is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding PENSKE 57 01 FEB 28 and Northstar Clean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northstar Clean Tech and PENSKE 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 PENSKE 57 01 FEB 28 are associated (or correlated) with Northstar Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northstar Clean Tech has no effect on the direction of PENSKE i.e., PENSKE and Northstar Clean go up and down completely randomly.
Pair Corralation between PENSKE and Northstar Clean
Assuming the 90 days trading horizon PENSKE 57 01 FEB 28 is expected to under-perform the Northstar Clean. But the bond apears to be less risky and, when comparing its historical volatility, PENSKE 57 01 FEB 28 is 6.41 times less risky than Northstar Clean. The bond trades about -0.24 of its potential returns per unit of risk. The Northstar Clean Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Northstar Clean Technologies on September 25, 2024 and sell it today you would earn a total of 9.00 from holding Northstar Clean Technologies or generate 60.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 66.67% |
Values | Daily Returns |
PENSKE 57 01 FEB 28 vs. Northstar Clean Technologies
Performance |
Timeline |
PENSKE 57 01 |
Northstar Clean Tech |
PENSKE and Northstar Clean Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PENSKE and Northstar Clean
The main advantage of trading using opposite PENSKE and Northstar Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENSKE position performs unexpectedly, Northstar Clean 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 Northstar Clean will offset losses from the drop in Northstar Clean's long position.PENSKE vs. Playa Hotels Resorts | PENSKE vs. Northstar Clean Technologies | PENSKE vs. Summa Silver Corp | PENSKE vs. ANTA Sports Products |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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