Correlation Between Ameresco and Fluor
Can any of the company-specific risk be diversified away by investing in both Ameresco and Fluor 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 Fluor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameresco and Fluor, you can compare the effects of market volatilities on Ameresco and Fluor 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 Fluor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameresco and Fluor.
Diversification Opportunities for Ameresco and Fluor
Very good diversification
The 3 months correlation between Ameresco and Fluor is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ameresco and Fluor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluor 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 Fluor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluor has no effect on the direction of Ameresco i.e., Ameresco and Fluor go up and down completely randomly.
Pair Corralation between Ameresco and Fluor
Given the investment horizon of 90 days Ameresco is expected to under-perform the Fluor. In addition to that, Ameresco is 1.5 times more volatile than Fluor. It trades about -0.04 of its total potential returns per unit of risk. Fluor is currently generating about 0.11 per unit of volatility. If you would invest 5,228 in Fluor on September 1, 2024 and sell it today you would earn a total of 385.00 from holding Fluor or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ameresco vs. Fluor
Performance |
| Timeline |
| Ameresco |
| Fluor |
Ameresco and Fluor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameresco and Fluor
The main advantage of trading using opposite Ameresco and Fluor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameresco position performs unexpectedly, Fluor 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 Fluor will offset losses from the drop in Fluor's long position.The idea behind Ameresco and Fluor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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