Correlation Between Moderna and Clearwater Paper

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Moderna and Clearwater Paper 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 Moderna and Clearwater Paper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moderna and Clearwater Paper, you can compare the effects of market volatilities on Moderna and Clearwater Paper 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 Moderna with a short position of Clearwater Paper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and Clearwater Paper.

Diversification Opportunities for Moderna and Clearwater Paper

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between Moderna and Clearwater is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and Clearwater Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Paper and Moderna 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 Moderna are associated (or correlated) with Clearwater Paper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Paper has no effect on the direction of Moderna i.e., Moderna and Clearwater Paper go up and down completely randomly.

Pair Corralation between Moderna and Clearwater Paper

Given the investment horizon of 90 days Moderna is expected to generate 1.07 times more return on investment than Clearwater Paper. However, Moderna is 1.07 times more volatile than Clearwater Paper. It trades about 0.36 of its potential returns per unit of risk. Clearwater Paper is currently generating about 0.05 per unit of risk. If you would invest  14,862  in Moderna on September 3, 2022 and sell it today you would earn a total of  3,096  from holding Moderna or generate 20.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Moderna  vs.  Clearwater Paper

 Performance (%) 
       Timeline  
Moderna 
Moderna Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Moderna are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Moderna sustained solid returns over the last few months and may actually be approaching a breakup point.

Moderna Price Channel

Clearwater Paper 
Clearwater Performance
0 of 100
Over the last 90 days Clearwater Paper has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, Clearwater Paper is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Clearwater Price Channel

Moderna and Clearwater Paper Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Moderna and Clearwater Paper

The main advantage of trading using opposite Moderna and Clearwater Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderna position performs unexpectedly, Clearwater Paper 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 Clearwater Paper will offset losses from the drop in Clearwater Paper's long position.
Moderna vs. Northwest Healthcare Properties
Moderna vs. Anheuser Busch Inbev
The idea behind Moderna and Clearwater Paper 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.
Clearwater Paper vs. PT Bank Central
Clearwater Paper vs. Bank Central Asia
Clearwater Paper vs. Anheuser-Busch InBev SANV
Clearwater Paper vs. GROWTH FUND OF
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go