Correlation Between Alternus Energy and Altus Power
Can any of the company-specific risk be diversified away by investing in both Alternus Energy and Altus Power 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 Alternus Energy and Altus Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alternus Energy Group and Altus Power, you can compare the effects of market volatilities on Alternus Energy and Altus Power 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 Alternus Energy with a short position of Altus Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternus Energy and Altus Power.
Diversification Opportunities for Alternus Energy and Altus Power
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alternus and Altus is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Alternus Energy Group and Altus Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altus Power and Alternus Energy 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 Alternus Energy Group are associated (or correlated) with Altus Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altus Power has no effect on the direction of Alternus Energy i.e., Alternus Energy and Altus Power go up and down completely randomly.
Pair Corralation between Alternus Energy and Altus Power
Given the investment horizon of 90 days Alternus Energy Group is expected to under-perform the Altus Power. In addition to that, Alternus Energy is 1.64 times more volatile than Altus Power. It trades about -0.49 of its total potential returns per unit of risk. Altus Power is currently generating about -0.08 per unit of volatility. If you would invest 439.00 in Altus Power on November 5, 2024 and sell it today you would lose (36.00) from holding Altus Power or give up 8.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Alternus Energy Group vs. Altus Power
Performance |
| Timeline |
| Alternus Energy Group |
| Altus Power |
Alternus Energy and Altus Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternus Energy and Altus Power
The main advantage of trading using opposite Alternus Energy and Altus Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternus Energy position performs unexpectedly, Altus Power 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 Altus Power will offset losses from the drop in Altus Power's long position.| Alternus Energy vs. Brandywine Realty Trust | Alternus Energy vs. Galaxy Gaming | Alternus Energy vs. Playtika Holding Corp | Alternus Energy vs. PepsiCo |
| Altus Power vs. Ormat Technologies | Altus Power vs. Enlight Renewable Energy | Altus Power vs. Fluence Energy | Altus Power vs. Renew Energy Global |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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