Correlation Between Advent Technologies and American Security
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and American Security 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 American Security 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 American Security Resources, you can compare the effects of market volatilities on Advent Technologies and American Security 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 American Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and American Security.
Diversification Opportunities for Advent Technologies and American Security
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advent and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and American Security Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Security 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 American Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Security has no effect on the direction of Advent Technologies i.e., Advent Technologies and American Security go up and down completely randomly.
Pair Corralation between Advent Technologies and American Security
If you would invest 0.99 in Advent Technologies Holdings on August 31, 2024 and sell it today you would lose (0.08) from holding Advent Technologies Holdings or give up 8.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Technologies Holdings vs. American Security Resources
Performance |
| Timeline |
| Advent Technologies |
| American Security |
Advent Technologies and American Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Technologies and American Security
The main advantage of trading using opposite Advent Technologies and American Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, American Security 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 American Security will offset losses from the drop in American Security's long position.The idea behind Advent Technologies Holdings and American Security Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| American Security vs. Astra Energy | American Security vs. Alternus Energy Group | American Security vs. Carnegie Clean Energy | American Security vs. Altius Renewable Royalties |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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