Correlation Between CVW CleanTech and Simclar

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

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

Diversification Opportunities for CVW CleanTech and Simclar

-0.11

Correlation Coefficient

CVW CleanTech  Simclar

Good diversification

The 3 months correlation between CVW and Simclar is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech and Simclar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simclar and CVW CleanTech 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 CVW CleanTech are associated (or correlated) with Simclar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simclar has no effect on the direction of CVW CleanTech i.e., CVW CleanTech and Simclar go up and down completely randomly.

Pair Corralation between CVW CleanTech and Simclar

If you would invest  74.00  in CVW CleanTech on July 19, 2025 and sell it today you would earn a total of  1.00  from holding CVW CleanTech or generate 1.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	9.38%
Values	Daily Returns

CVW CleanTech  vs.  Simclar

CVW CleanTech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CVW CleanTech are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, CVW CleanTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Simclar

Risk-Adjusted Performance

Weakest

Over the last 90 days Simclar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Simclar is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with CVW CleanTech and Simclar

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

The idea behind CVW CleanTech and Simclar 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.