Correlation Between Advent Technologies and Southern
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and Southern 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 Southern 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 Southern Co, you can compare the effects of market volatilities on Advent Technologies and Southern 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 Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Southern.
Diversification Opportunities for Advent Technologies and Southern
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advent and Southern is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Southern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern 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 Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern has no effect on the direction of Advent Technologies i.e., Advent Technologies and Southern go up and down completely randomly.
Pair Corralation between Advent Technologies and Southern
Considering the 90-day investment horizon Advent Technologies Holdings is expected to generate 6.45 times more return on investment than Southern. However, Advent Technologies is 6.45 times more volatile than Southern Co. It trades about 0.03 of its potential returns per unit of risk. Southern Co is currently generating about 0.0 per unit of risk. If you would invest 504.00 in Advent Technologies Holdings on December 2, 2024 and sell it today you would earn a total of 0.00 from holding Advent Technologies Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Technologies Holdings vs. Southern Co
Performance |
| Timeline |
| Advent Technologies |
| Southern |
Advent Technologies and Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Technologies and Southern
The main advantage of trading using opposite Advent Technologies and Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Southern 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 Southern will offset losses from the drop in Southern's long position.| Advent Technologies vs. Fusion Fuel Green | ||
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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