Correlation Between Altus Power and Kansai Electric
Can any of the company-specific risk be diversified away by investing in both Altus Power and Kansai Electric 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 Altus Power and Kansai Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altus Power and The Kansai Electric, you can compare the effects of market volatilities on Altus Power and Kansai Electric 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 Altus Power with a short position of Kansai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altus Power and Kansai Electric.
Diversification Opportunities for Altus Power and Kansai Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altus and Kansai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altus Power and The Kansai Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansai Electric and Altus Power 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 Altus Power are associated (or correlated) with Kansai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansai Electric has no effect on the direction of Altus Power i.e., Altus Power and Kansai Electric go up and down completely randomly.
Pair Corralation between Altus Power and Kansai Electric
If you would invest 377.00 in Altus Power on August 27, 2024 and sell it today you would earn a total of 51.00 from holding Altus Power or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Altus Power vs. The Kansai Electric
Performance |
| Timeline |
| Altus Power |
| Kansai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altus Power and Kansai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altus Power and Kansai Electric
The main advantage of trading using opposite Altus Power and Kansai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altus Power position performs unexpectedly, Kansai Electric 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 Kansai Electric will offset losses from the drop in Kansai Electric's long position.| Altus Power vs. Ormat Technologies | Altus Power vs. Enlight Renewable Energy | Altus Power vs. Fluence Energy | Altus Power vs. Renew Energy Global |
| Kansai Electric vs. Titan International | Kansai Electric vs. Topbuild Corp | Kansai Electric vs. Newpark Resources | Kansai Electric vs. MYR Group |
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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