Correlation Between Advent Technologies and Heliogen
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and Heliogen 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 Heliogen 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 Heliogen, you can compare the effects of market volatilities on Advent Technologies and Heliogen 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 Heliogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Heliogen.
Diversification Opportunities for Advent Technologies and Heliogen
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Heliogen is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Heliogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliogen 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 Heliogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliogen has no effect on the direction of Advent Technologies i.e., Advent Technologies and Heliogen go up and down completely randomly.
Pair Corralation between Advent Technologies and Heliogen
If you would invest 537.00 in Advent Technologies Holdings on November 4, 2024 and sell it today you would earn a total of 12.00 from holding Advent Technologies Holdings or generate 2.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 5.0% |
Values | Daily Returns |
Advent Technologies Holdings vs. Heliogen
Performance |
Timeline |
Advent Technologies |
Heliogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advent Technologies and Heliogen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advent Technologies and Heliogen
The main advantage of trading using opposite Advent Technologies and Heliogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Heliogen 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 Heliogen will offset losses from the drop in Heliogen'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 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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