Correlation Between Advent Technologies and Duke Energy
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and Duke 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 Advent Technologies and Duke Energy 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 Duke Energy Corp, you can compare the effects of market volatilities on Advent Technologies and Duke 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 Advent Technologies with a short position of Duke Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Duke Energy.
Diversification Opportunities for Advent Technologies and Duke Energy
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advent and Duke is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Duke Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duke Energy Corp 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 Duke Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duke Energy Corp has no effect on the direction of Advent Technologies i.e., Advent Technologies and Duke Energy go up and down completely randomly.
Pair Corralation between Advent Technologies and Duke Energy
Considering the 90-day investment horizon Advent Technologies Holdings is expected to generate 49.25 times more return on investment than Duke Energy. However, Advent Technologies is 49.25 times more volatile than Duke Energy Corp. It trades about 0.36 of its potential returns per unit of risk. Duke Energy Corp is currently generating about -0.05 per unit of risk. If you would invest 184.00 in Advent Technologies Holdings on August 27, 2024 and sell it today you would earn a total of 465.00 from holding Advent Technologies Holdings or generate 252.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Technologies Holdings vs. Duke Energy Corp
Performance |
| Timeline |
| Advent Technologies |
| Duke Energy Corp |
Advent Technologies and Duke Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Technologies and Duke Energy
The main advantage of trading using opposite Advent Technologies and Duke Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Duke 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 Duke Energy will offset losses from the drop in Duke Energy'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 |
| Duke Energy vs. Southern Co | Duke Energy vs. DTE Energy Co | Duke Energy vs. CMS Energy Corp | Duke Energy vs. CMS Energy Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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