Correlation Between Capital Clean and Excelerate Energy
Can any of the company-specific risk be diversified away by investing in both Capital Clean and Excelerate 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 Capital Clean and Excelerate Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Clean Energy and Excelerate Energy, you can compare the effects of market volatilities on Capital Clean and Excelerate 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 Capital Clean with a short position of Excelerate Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Clean and Excelerate Energy.
Diversification Opportunities for Capital Clean and Excelerate Energy
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capital and Excelerate is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Capital Clean Energy and Excelerate Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelerate Energy and Capital 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 Capital Clean Energy are associated (or correlated) with Excelerate Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelerate Energy has no effect on the direction of Capital Clean i.e., Capital Clean and Excelerate Energy go up and down completely randomly.
Pair Corralation between Capital Clean and Excelerate Energy
Given the investment horizon of 90 days Capital Clean Energy is expected to generate 1.33 times more return on investment than Excelerate Energy. However, Capital Clean is 1.33 times more volatile than Excelerate Energy. It trades about -0.04 of its potential returns per unit of risk. Excelerate Energy is currently generating about -0.12 per unit of risk. If you would invest 2,295 in Capital Clean Energy on May 31, 2025 and sell it today you would lose (185.00) from holding Capital Clean Energy or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Clean Energy vs. Excelerate Energy
Performance |
| Timeline |
| Capital Clean Energy |
| Excelerate Energy |
Capital Clean and Excelerate Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Clean and Excelerate Energy
The main advantage of trading using opposite Capital Clean and Excelerate Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Clean position performs unexpectedly, Excelerate 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 Excelerate Energy will offset losses from the drop in Excelerate Energy's long position.| Capital Clean vs. MGIC Investment Corp | Capital Clean vs. Tyson Foods | Capital Clean vs. AMCON Distributing | Capital Clean vs. Austevoll Seafood ASA |
| Excelerate Energy vs. Avista | Excelerate Energy vs. Black Hills | Excelerate Energy vs. Clearway Energy Class | Excelerate Energy vs. Ellomay Capital |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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