Correlation Between Advent Technologies and Ocean Thermal
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and Ocean Thermal 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 Advent Technologies and Ocean Thermal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Technologies Holdings and Ocean Thermal Energy, you can compare the effects of market volatilities on Advent Technologies and Ocean Thermal 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 Advent Technologies with a short position of Ocean Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Ocean Thermal.
Diversification Opportunities for Advent Technologies and Ocean Thermal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and Ocean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Ocean Thermal Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Thermal Energy and Advent Technologies 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 Advent Technologies Holdings are associated (or correlated) with Ocean Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Thermal Energy has no effect on the direction of Advent Technologies i.e., Advent Technologies and Ocean Thermal go up and down completely randomly.
Pair Corralation between Advent Technologies and Ocean Thermal
If you would invest 497.00 in Advent Technologies Holdings on November 28, 2024 and sell it today you would lose (1.00) from holding Advent Technologies Holdings or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Advent Technologies Holdings vs. Ocean Thermal Energy
Performance |
| Timeline |
| Advent Technologies |
| Ocean Thermal Energy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Advent Technologies and Ocean Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Technologies and Ocean Thermal
The main advantage of trading using opposite Advent Technologies and Ocean Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Ocean Thermal 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 Ocean Thermal will offset losses from the drop in Ocean Thermal's long position.| Advent Technologies vs. Fusion Fuel Green | Advent Technologies vs. Fluence Energy | Advent Technologies vs. Altus Power | Advent Technologies vs. Energy Vault Holdings |
| Ocean Thermal vs. Verde Clean Fuels | Ocean Thermal vs. Smart Powerr Corp | Ocean Thermal vs. Ormat Technologies | Ocean Thermal vs. Tokyo Electric Power |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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