Correlation Between Capstone Holding and CN Energy
Can any of the company-specific risk be diversified away by investing in both Capstone Holding and CN Energy 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 Capstone Holding and CN Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capstone Holding Corp and CN Energy Group, you can compare the effects of market volatilities on Capstone Holding and CN Energy 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 Capstone Holding with a short position of CN Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Holding and CN Energy.
Diversification Opportunities for Capstone Holding and CN Energy
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capstone and CNEY is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Holding Corp and CN Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN Energy Group and Capstone Holding 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 Capstone Holding Corp are associated (or correlated) with CN Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN Energy Group has no effect on the direction of Capstone Holding i.e., Capstone Holding and CN Energy go up and down completely randomly.
Pair Corralation between Capstone Holding and CN Energy
Given the investment horizon of 90 days Capstone Holding Corp is expected to generate 2.25 times more return on investment than CN Energy. However, Capstone Holding is 2.25 times more volatile than CN Energy Group. It trades about -0.03 of its potential returns per unit of risk. CN Energy Group is currently generating about -0.08 per unit of risk. If you would invest 162.00 in Capstone Holding Corp on July 21, 2025 and sell it today you would lose (60.00) from holding Capstone Holding Corp or give up 37.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capstone Holding Corp vs. CN Energy Group
Performance |
| Timeline |
| Capstone Holding Corp |
| CN Energy Group |
Capstone Holding and CN Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Holding and CN Energy
The main advantage of trading using opposite Capstone Holding and CN Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Holding position performs unexpectedly, CN Energy 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 CN Energy will offset losses from the drop in CN Energy's long position.| Capstone Holding vs. CN Energy Group | Capstone Holding vs. ReTo Eco Solutions | Capstone Holding vs. Enlightify | Capstone Holding vs. IT Tech Packaging |
| CN Energy vs. IT Tech Packaging | CN Energy vs. Enlightify | CN Energy vs. Capstone Holding Corp | CN Energy vs. Gulf Resources |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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