Correlation Between CBAK Energy and FREY Old

Can any of the company-specific risk be diversified away by investing in both CBAK Energy and FREY Old 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 CBAK Energy and FREY Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for CBAK Energy and FREY Old

0.0

Correlation Coefficient

CBAK Energy  FREY Old

Pay attention - limited upside

The 3 months correlation between CBAK and FREY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CBAK Energy Technology and FREY Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FREY Old and CBAK Energy 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 CBAK Energy Technology are associated (or correlated) with FREY Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FREY Old has no effect on the direction of CBAK Energy i.e., CBAK Energy and FREY Old go up and down completely randomly.

Pair Corralation between CBAK Energy and FREY Old

If you would invest  81.00  in CBAK Energy Technology on May 5, 2025 and sell it today you would earn a total of  9.00  from holding CBAK Energy Technology or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

CBAK Energy Technology  vs.  FREY Old

CBAK Energy Technology

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CBAK Energy Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, CBAK Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

FREY Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days FREY Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, FREY Old is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CBAK Energy and FREY Old

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

The idea behind CBAK Energy Technology and FREY Old 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.