Correlation Between ALTAIR RES and FuelCell Energy
Can any of the company-specific risk be diversified away by investing in both ALTAIR RES and FuelCell Energy 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 ALTAIR RES and FuelCell Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALTAIR RES INC and FuelCell Energy, you can compare the effects of market volatilities on ALTAIR RES and FuelCell Energy 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 ALTAIR RES with a short position of FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTAIR RES and FuelCell Energy.
Diversification Opportunities for ALTAIR RES and FuelCell Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALTAIR and FuelCell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALTAIR RES INC and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell Energy and ALTAIR RES 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 ALTAIR RES INC are associated (or correlated) with FuelCell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelCell Energy has no effect on the direction of ALTAIR RES i.e., ALTAIR RES and FuelCell Energy go up and down completely randomly.
Pair Corralation between ALTAIR RES and FuelCell Energy
If you would invest 0.05 in ALTAIR RES INC on November 6, 2024 and sell it today you would earn a total of 0.00 from holding ALTAIR RES INC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 26.32% |
| Values | Daily Returns |
ALTAIR RES INC vs. FuelCell Energy
Performance |
| Timeline |
| ALTAIR RES INC |
| FuelCell Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
ALTAIR RES and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALTAIR RES and FuelCell Energy
The main advantage of trading using opposite ALTAIR RES and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTAIR RES position performs unexpectedly, FuelCell Energy 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 FuelCell Energy will offset losses from the drop in FuelCell Energy's long position.| ALTAIR RES vs. Eidesvik Offshore ASA | ALTAIR RES vs. Plastic Omnium | ALTAIR RES vs. CDL INVESTMENT | ALTAIR RES vs. HK Electric Investments |
| FuelCell Energy vs. Wyndham Hotels Resorts | FuelCell Energy vs. Scottish Mortgage Investment | FuelCell Energy vs. HK Electric Investments | FuelCell Energy vs. Hyatt Hotels |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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