Correlation Between Cloudberry Clean and Scatec Solar
Can any of the company-specific risk be diversified away by investing in both Cloudberry Clean and Scatec Solar 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 Scatec Solar 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 Scatec Solar OL, you can compare the effects of market volatilities on Cloudberry Clean and Scatec Solar 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 Scatec Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudberry Clean and Scatec Solar.
Diversification Opportunities for Cloudberry Clean and Scatec Solar
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cloudberry and Scatec is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cloudberry Clean Energy and Scatec Solar OL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scatec Solar OL 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 Scatec Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scatec Solar OL has no effect on the direction of Cloudberry Clean i.e., Cloudberry Clean and Scatec Solar go up and down completely randomly.
Pair Corralation between Cloudberry Clean and Scatec Solar
Assuming the 90 days trading horizon Cloudberry Clean is expected to generate 2.84 times less return on investment than Scatec Solar. In addition to that, Cloudberry Clean is 1.36 times more volatile than Scatec Solar OL. It trades about 0.09 of its total potential returns per unit of risk. Scatec Solar OL is currently generating about 0.36 per unit of volatility. If you would invest 7,855 in Scatec Solar OL on April 24, 2025 and sell it today you would earn a total of 2,605 from holding Scatec Solar OL or generate 33.16% 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. Scatec Solar OL
Performance |
Timeline |
Cloudberry Clean Energy |
Scatec Solar OL |
Cloudberry Clean and Scatec Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cloudberry Clean and Scatec Solar
The main advantage of trading using opposite Cloudberry Clean and Scatec Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudberry Clean position performs unexpectedly, Scatec Solar 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 Scatec Solar will offset losses from the drop in Scatec Solar's long position.Cloudberry Clean vs. Scatec Solar OL | Cloudberry Clean vs. Aker Carbon Capture | Cloudberry Clean vs. Magnora ASA |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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