Correlation Between Alternus Energy and SolarWindow Technologies
Can any of the company-specific risk be diversified away by investing in both Alternus Energy and SolarWindow Technologies 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 SolarWindow Technologies 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 SolarWindow Technologies, you can compare the effects of market volatilities on Alternus Energy and SolarWindow Technologies 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 SolarWindow Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternus Energy and SolarWindow Technologies.
Diversification Opportunities for Alternus Energy and SolarWindow Technologies
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alternus and SolarWindow is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Alternus Energy Group and SolarWindow Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarWindow Technologies 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 SolarWindow Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarWindow Technologies has no effect on the direction of Alternus Energy i.e., Alternus Energy and SolarWindow Technologies go up and down completely randomly.
Pair Corralation between Alternus Energy and SolarWindow Technologies
Assuming the 90 days horizon Alternus Energy Group is expected to under-perform the SolarWindow Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, Alternus Energy Group is 10.05 times less risky than SolarWindow Technologies. The pink sheet trades about -0.02 of its potential returns per unit of risk. The SolarWindow Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 25.00 in SolarWindow Technologies on January 24, 2025 and sell it today you would earn a total of 4.00 from holding SolarWindow Technologies or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Alternus Energy Group vs. SolarWindow Technologies
Performance |
| Timeline |
| Alternus Energy Group |
| SolarWindow Technologies |
Alternus Energy and SolarWindow Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternus Energy and SolarWindow Technologies
The main advantage of trading using opposite Alternus Energy and SolarWindow Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternus Energy position performs unexpectedly, SolarWindow Technologies 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 SolarWindow Technologies will offset losses from the drop in SolarWindow Technologies' long position.| Alternus Energy vs. SNDL Inc | Alternus Energy vs. Anheuser Busch Inbev | Alternus Energy vs. MGIC Investment Corp | Alternus Energy vs. Thai Beverage PCL |
| SolarWindow Technologies vs. Temenos Group AG | SolarWindow Technologies vs. RenoWorks Software | SolarWindow Technologies vs. 01 Communique Laboratory | SolarWindow Technologies vs. LifeSpeak |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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