Correlation Between FuelCell Energy and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy and Liontrust Asset 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 FuelCell Energy and Liontrust Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Liontrust Asset Management, you can compare the effects of market volatilities on FuelCell Energy and Liontrust Asset 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 FuelCell Energy with a short position of Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Liontrust Asset.
Diversification Opportunities for FuelCell Energy and Liontrust Asset
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FuelCell and Liontrust is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana and FuelCell 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 FuelCell Energy are associated (or correlated) with Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of FuelCell Energy i.e., FuelCell Energy and Liontrust Asset go up and down completely randomly.
Pair Corralation between FuelCell Energy and Liontrust Asset
Assuming the 90 days trading horizon FuelCell Energy is expected to generate 5.16 times more return on investment than Liontrust Asset. However, FuelCell Energy is 5.16 times more volatile than Liontrust Asset Management. It trades about 0.13 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.19 per unit of risk. If you would invest 1,120 in FuelCell Energy on October 10, 2024 and sell it today you would earn a total of 183.00 from holding FuelCell Energy or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
FuelCell Energy vs. Liontrust Asset Management
Performance |
| Timeline |
| FuelCell Energy |
| Liontrust Asset Mana |
FuelCell Energy and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelCell Energy and Liontrust Asset
The main advantage of trading using opposite FuelCell Energy and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| FuelCell Energy vs. Symphony Environmental Technologies | FuelCell Energy vs. URU Metals | FuelCell Energy vs. First Class Metals | FuelCell Energy vs. Thor Mining PLC |
| Liontrust Asset vs. SupplyMe Capital PLC | Liontrust Asset vs. SM Energy Co | Liontrust Asset vs. FuelCell Energy | Liontrust Asset vs. Grand Vision Media |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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