Correlation Between Born and Global Clean
Can any of the company-specific risk be diversified away by investing in both Born and Global Clean 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 Born and Global Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Born Inc and Global Clean Energy, you can compare the effects of market volatilities on Born and Global 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 Born with a short position of Global Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Born and Global Clean.
Diversification Opportunities for Born and Global Clean
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Born and Global is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Born Inc and Global Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Clean Energy and Born 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 Born Inc are associated (or correlated) with Global Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Clean Energy has no effect on the direction of Born i.e., Born and Global Clean go up and down completely randomly.
Pair Corralation between Born and Global Clean
Given the investment horizon of 90 days Born Inc is expected to under-perform the Global Clean. But the pink sheet apears to be less risky and, when comparing its historical volatility, Born Inc is 1.89 times less risky than Global Clean. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Global Clean Energy is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5.30 in Global Clean Energy on September 6, 2025 and sell it today you would earn a total of 2.40 from holding Global Clean Energy or generate 45.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Born Inc vs. Global Clean Energy
Performance |
| Timeline |
| Born Inc |
| Global Clean Energy |
Born and Global Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Born and Global Clean
The main advantage of trading using opposite Born and Global Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Born position performs unexpectedly, Global 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 Global Clean will offset losses from the drop in Global Clean's long position.| Born vs. Central Wireless | Born vs. Electreon Wireless | Born vs. Forum Mobile | Born vs. Wireless Xcessories Group |
| Global Clean vs. Active Health Foods | Global Clean vs. Plaza Retail REIT | Global Clean vs. MTY Food Group | Global Clean vs. H2O Retailing |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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