Correlation Between Ameresco and Orion Group
Can any of the company-specific risk be diversified away by investing in both Ameresco and Orion Group 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 Orion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ameresco and Orion Group Holdings, you can compare the effects of market volatilities on Ameresco and Orion Group 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 Orion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameresco and Orion Group.
Diversification Opportunities for Ameresco and Orion Group
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ameresco and Orion is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ameresco and Orion Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orion Group Holdings 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 Orion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orion Group Holdings has no effect on the direction of Ameresco i.e., Ameresco and Orion Group go up and down completely randomly.
Pair Corralation between Ameresco and Orion Group
Given the investment horizon of 90 days Ameresco is expected to under-perform the Orion Group. In addition to that, Ameresco is 1.13 times more volatile than Orion Group Holdings. It trades about -0.1 of its total potential returns per unit of risk. Orion Group Holdings is currently generating about 0.24 per unit of volatility. If you would invest 577.00 in Orion Group Holdings on August 30, 2024 and sell it today you would earn a total of 300.00 from holding Orion Group Holdings or generate 51.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ameresco vs. Orion Group Holdings
Performance |
| Timeline |
| Ameresco |
| Orion Group Holdings |
Ameresco and Orion Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ameresco and Orion Group
The main advantage of trading using opposite Ameresco and Orion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ameresco position performs unexpectedly, Orion Group 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 Orion Group will offset losses from the drop in Orion Group's long position.| Ameresco vs. TPI Composites | Ameresco vs. Hannon Armstrong Sustainable | Ameresco vs. Atkore International Group | Ameresco vs. Daqo New Energy |
| Orion Group vs. MYR Group | Orion Group vs. Granite Construction Incorporated | Orion Group vs. Construction Partners | Orion Group vs. Great Lakes Dredge |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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