Correlation Between Clarke and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Clarke and Senvest Capital 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 Clarke and Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clarke Inc and Senvest Capital, you can compare the effects of market volatilities on Clarke and Senvest Capital 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 Clarke with a short position of Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clarke and Senvest Capital.
Diversification Opportunities for Clarke and Senvest Capital
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clarke and Senvest is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Clarke Inc and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital and Clarke 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 Clarke Inc are associated (or correlated) with Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Clarke i.e., Clarke and Senvest Capital go up and down completely randomly.
Pair Corralation between Clarke and Senvest Capital
Assuming the 90 days trading horizon Clarke Inc is expected to generate 1.06 times more return on investment than Senvest Capital. However, Clarke is 1.06 times more volatile than Senvest Capital. It trades about 0.25 of its potential returns per unit of risk. Senvest Capital is currently generating about 0.1 per unit of risk. If you would invest 2,250 in Clarke Inc on April 23, 2025 and sell it today you would earn a total of 600.00 from holding Clarke Inc or generate 26.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.41% |
Values | Daily Returns |
Clarke Inc vs. Senvest Capital
Performance |
Timeline |
Clarke Inc |
Senvest Capital |
Clarke and Senvest Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Clarke and Senvest Capital
The main advantage of trading using opposite Clarke and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clarke position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.Clarke vs. Accor SA | Clarke vs. GreenTree Hospitality Group | Clarke vs. Sonder Holdings | Clarke vs. Hilton Worldwide Holdings |
Senvest Capital vs. Westshore Terminals Investment | Senvest Capital vs. Highwood Asset Management | Senvest Capital vs. DIRTT Environmental Solutions | Senvest Capital vs. Data Communications Management |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |