Correlation Between ContraFect and Clean Air

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

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

Diversification Opportunities for ContraFect and Clean Air

0.0

Correlation Coefficient

ContraFect  Clean Air

Pay attention - limited upside

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

Pair Corralation between ContraFect and Clean Air

If you would invest (100.00) in ContraFect on April 28, 2025 and sell it today you would earn a total of  100.00  from holding ContraFect or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ContraFect  vs.  Clean Air Metals

ContraFect

Risk-Adjusted Performance

Very Weak

Over the last 90 days ContraFect has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, ContraFect is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Clean Air Metals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Clean Air Metals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Clean Air reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ContraFect and Clean Air

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

The idea behind ContraFect and Clean Air Metals 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.