Correlation Between Aemetis and Polar Power
Can any of the company-specific risk be diversified away by investing in both Aemetis and Polar Power 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 Aemetis and Polar Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aemetis and Polar Power, you can compare the effects of market volatilities on Aemetis and Polar Power 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 Aemetis with a short position of Polar Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aemetis and Polar Power.
Diversification Opportunities for Aemetis and Polar Power
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aemetis and Polar is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aemetis and Polar Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Power and Aemetis 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 Aemetis are associated (or correlated) with Polar Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Power has no effect on the direction of Aemetis i.e., Aemetis and Polar Power go up and down completely randomly.
Pair Corralation between Aemetis and Polar Power
Given the investment horizon of 90 days Aemetis is expected to generate 0.79 times more return on investment than Polar Power. However, Aemetis is 1.26 times less risky than Polar Power. It trades about 0.15 of its potential returns per unit of risk. Polar Power is currently generating about 0.04 per unit of risk. If you would invest 249.00 in Aemetis on August 29, 2024 and sell it today you would earn a total of 144.00 from holding Aemetis or generate 57.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aemetis vs. Polar Power
Performance |
| Timeline |
| Aemetis |
| Polar Power |
Aemetis and Polar Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aemetis and Polar Power
The main advantage of trading using opposite Aemetis and Polar Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aemetis position performs unexpectedly, Polar Power 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 Polar Power will offset losses from the drop in Polar Power's long position.| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. Vertex Energy |
| Polar Power vs. CBAK Energy Technology | Polar Power vs. Ocean Power Technologies | Polar Power vs. Enersys | Polar Power vs. Flux Power Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |