Correlation Between Absolute Clean and SPCG Public

Can any of the company-specific risk be diversified away by investing in both Absolute Clean and SPCG Public 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 Absolute Clean and SPCG Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Absolute Clean Energy and SPCG Public, you can compare the effects of market volatilities on Absolute Clean and SPCG Public 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 Absolute Clean with a short position of SPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absolute Clean and SPCG Public.

Diversification Opportunities for Absolute Clean and SPCG Public

-0.13

Correlation Coefficient

Absolute Clean  SPCG Public

Good diversification

The 3 months correlation between Absolute and SPCG is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Absolute Clean Energy and SPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPCG Public and Absolute 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 Absolute Clean Energy are associated (or correlated) with SPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPCG Public has no effect on the direction of Absolute Clean i.e., Absolute Clean and SPCG Public go up and down completely randomly.

Pair Corralation between Absolute Clean and SPCG Public

Assuming the 90 days trading horizon Absolute Clean is expected to generate 17.79 times less return on investment than SPCG Public. But when comparing it to its historical volatility, Absolute Clean Energy is 2.53 times less risky than SPCG Public. It trades about 0.02 of its potential returns per unit of risk. SPCG Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  716.00  in SPCG Public on September 3, 2025 and sell it today you would earn a total of  129.00  from holding SPCG Public or generate 18.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Absolute Clean Energy  vs.  SPCG Public

Absolute Clean Energy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Absolute Clean Energy are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Absolute Clean is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

SPCG Public

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SPCG Public are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, SPCG Public disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Absolute Clean and SPCG Public

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

The idea behind Absolute Clean Energy and SPCG Public 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.