Correlation Between Cloudberry Clean and Jaeren Sparebank

Can any of the company-specific risk be diversified away by investing in both Cloudberry Clean and Jaeren Sparebank 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 Jaeren Sparebank 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 Jaeren Sparebank, you can compare the effects of market volatilities on Cloudberry Clean and Jaeren Sparebank 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 Jaeren Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudberry Clean and Jaeren Sparebank.

Diversification Opportunities for Cloudberry Clean and Jaeren Sparebank

-0.45

Correlation Coefficient

Cloudberry Clean  Jaeren Sparebank

Very good diversification

The 3 months correlation between Cloudberry and Jaeren is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cloudberry Clean Energy and Jaeren Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaeren Sparebank 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 Jaeren Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaeren Sparebank has no effect on the direction of Cloudberry Clean i.e., Cloudberry Clean and Jaeren Sparebank go up and down completely randomly.

Pair Corralation between Cloudberry Clean and Jaeren Sparebank

Assuming the 90 days trading horizon Cloudberry Clean Energy is expected to generate 1.88 times more return on investment than Jaeren Sparebank. However, Cloudberry Clean is 1.88 times more volatile than Jaeren Sparebank. It trades about 0.11 of its potential returns per unit of risk. Jaeren Sparebank is currently generating about 0.03 per unit of risk. If you would invest  1,208  in Cloudberry Clean Energy on April 23, 2025 and sell it today you would earn a total of  146.00  from holding Cloudberry Clean Energy or generate 12.09% return on investment over 90 days.

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

Cloudberry Clean Energy  vs.  Jaeren Sparebank

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 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Cloudberry Clean displayed solid returns over the last few months and may actually be approaching a breakup point.

Jaeren Sparebank

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jaeren Sparebank are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Jaeren Sparebank is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Cloudberry Clean and Jaeren Sparebank

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

The idea behind Cloudberry Clean Energy and Jaeren Sparebank 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.