Correlation Between Alternus Energy and Gentex
Can any of the company-specific risk be diversified away by investing in both Alternus Energy and Gentex 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 Gentex 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 Gentex, you can compare the effects of market volatilities on Alternus Energy and Gentex 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 Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternus Energy and Gentex.
Diversification Opportunities for Alternus Energy and Gentex
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alternus and Gentex is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Alternus Energy Group and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex 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 Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of Alternus Energy i.e., Alternus Energy and Gentex go up and down completely randomly.
Pair Corralation between Alternus Energy and Gentex
Given the investment horizon of 90 days Alternus Energy Group is expected to under-perform the Gentex. In addition to that, Alternus Energy is 4.09 times more volatile than Gentex. It trades about -0.43 of its total potential returns per unit of risk. Gentex is currently generating about 0.11 per unit of volatility. If you would invest 3,019 in Gentex on September 12, 2024 and sell it today you would earn a total of 96.00 from holding Gentex or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alternus Energy Group vs. Gentex
Performance |
| Timeline |
| Alternus Energy Group |
| Gentex |
Alternus Energy and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternus Energy and Gentex
The main advantage of trading using opposite Alternus Energy and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternus Energy position performs unexpectedly, Gentex 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 Gentex will offset losses from the drop in Gentex's long position.| Alternus Energy vs. Enlight Renewable Energy | Alternus Energy vs. Renew Energy Global | Alternus Energy vs. Clearway Energy Class | Alternus Energy vs. Excelerate Energy |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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