Correlation Between Advent Technologies and Fusion Fuel
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and Fusion Fuel 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 Fusion Fuel 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 Fusion Fuel Green, you can compare the effects of market volatilities on Advent Technologies and Fusion Fuel 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 Fusion Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Fusion Fuel.
Diversification Opportunities for Advent Technologies and Fusion Fuel
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advent and Fusion is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green 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 Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of Advent Technologies i.e., Advent Technologies and Fusion Fuel go up and down completely randomly.
Pair Corralation between Advent Technologies and Fusion Fuel
Assuming the 90 days horizon Advent Technologies Holdings is expected to generate 0.53 times more return on investment than Fusion Fuel. However, Advent Technologies Holdings is 1.88 times less risky than Fusion Fuel. It trades about 0.16 of its potential returns per unit of risk. Fusion Fuel Green is currently generating about -0.12 per unit of risk. If you would invest 0.99 in Advent Technologies Holdings on August 24, 2024 and sell it today you would earn a total of 0.30 from holding Advent Technologies Holdings or generate 30.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Technologies Holdings vs. Fusion Fuel Green
Performance |
| Timeline |
| Advent Technologies |
| Fusion Fuel Green |
Advent Technologies and Fusion Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Technologies and Fusion Fuel
The main advantage of trading using opposite Advent Technologies and Fusion Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Fusion Fuel 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 Fusion Fuel will offset losses from the drop in Fusion Fuel's long position.| Advent Technologies vs. Advent Technologies Holdings | Advent Technologies vs. Fusion Fuel Green | Advent Technologies vs. HUMANA INC | Advent Technologies vs. Aquagold International |
| Fusion Fuel vs. Fusion Fuel Green | Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Eos Energy Enterprises | Fusion Fuel vs. CuriosityStream |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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