Correlation Between Ameresco and Energy Services
Can any of the company-specific risk be diversified away by investing in both Ameresco and Energy Services 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 Ameresco and Energy Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameresco and Energy Services, you can compare the effects of market volatilities on Ameresco and Energy Services 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 Ameresco with a short position of Energy Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameresco and Energy Services.
Diversification Opportunities for Ameresco and Energy Services
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ameresco and Energy is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ameresco and Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Services and Ameresco 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 Ameresco are associated (or correlated) with Energy Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Services has no effect on the direction of Ameresco i.e., Ameresco and Energy Services go up and down completely randomly.
Pair Corralation between Ameresco and Energy Services
Given the investment horizon of 90 days Ameresco is expected to under-perform the Energy Services. But the stock apears to be less risky and, when comparing its historical volatility, Ameresco is 1.57 times less risky than Energy Services. The stock trades about -0.31 of its potential returns per unit of risk. The Energy Services is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Energy Services on November 9, 2024 and sell it today you would lose (43.00) from holding Energy Services or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ameresco vs. Energy Services
Performance |
| Timeline |
| Ameresco |
| Energy Services |
Ameresco and Energy Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameresco and Energy Services
The main advantage of trading using opposite Ameresco and Energy Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameresco position performs unexpectedly, Energy Services 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 Energy Services will offset losses from the drop in Energy Services' long position.| Ameresco vs. TPI Composites | Ameresco vs. Hannon Armstrong Sustainable | Ameresco vs. Atkore International Group | Ameresco vs. Daqo New Energy |
| Energy Services vs. Bouygues SA | Energy Services vs. NV5 Global | Energy Services vs. Matrix Service Co | Energy Services 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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