Correlation Between Cloudberry Clean and Integrated Wind

Can any of the company-specific risk be diversified away by investing in both Cloudberry Clean and Integrated Wind 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 Cloudberry Clean and Integrated Wind into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cloudberry Clean Energy and Integrated Wind Solutions, you can compare the effects of market volatilities on Cloudberry Clean and Integrated Wind 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 Cloudberry Clean with a short position of Integrated Wind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudberry Clean and Integrated Wind.

Diversification Opportunities for Cloudberry Clean and Integrated Wind

0.57

Correlation Coefficient

Cloudberry Clean  Integrated Wind

Very weak diversification

The 3 months correlation between Cloudberry and Integrated is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cloudberry Clean Energy and Integrated Wind Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Wind Solutions and Cloudberry Clean 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 Cloudberry Clean Energy are associated (or correlated) with Integrated Wind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Wind Solutions has no effect on the direction of Cloudberry Clean i.e., Cloudberry Clean and Integrated Wind go up and down completely randomly.

Pair Corralation between Cloudberry Clean and Integrated Wind

Assuming the 90 days trading horizon Cloudberry Clean is expected to generate 1.19 times less return on investment than Integrated Wind. But when comparing it to its historical volatility, Cloudberry Clean Energy is 1.01 times less risky than Integrated Wind. It trades about 0.09 of its potential returns per unit of risk. Integrated Wind Solutions is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  4,110  in Integrated Wind Solutions on April 24, 2025 and sell it today you would earn a total of  490.00  from holding Integrated Wind Solutions or generate 11.92% return on investment over 90 days.

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

Cloudberry Clean Energy  vs.  Integrated Wind Solutions

Cloudberry Clean Energy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cloudberry Clean Energy are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Cloudberry Clean may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Integrated Wind Solutions

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Wind Solutions are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Integrated Wind may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Cloudberry Clean and Integrated Wind

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

The idea behind Cloudberry Clean Energy and Integrated Wind Solutions 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..