Correlation Between Aemetis and VivoPower International
Can any of the company-specific risk be diversified away by investing in both Aemetis and VivoPower International 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 VivoPower International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aemetis and VivoPower International PLC, you can compare the effects of market volatilities on Aemetis and VivoPower International 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 VivoPower International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aemetis and VivoPower International.
Diversification Opportunities for Aemetis and VivoPower International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aemetis and VivoPower is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aemetis and VivoPower International PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VivoPower International 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 VivoPower International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VivoPower International has no effect on the direction of Aemetis i.e., Aemetis and VivoPower International go up and down completely randomly.
Pair Corralation between Aemetis and VivoPower International
Given the investment horizon of 90 days Aemetis is expected to generate 10.54 times less return on investment than VivoPower International. But when comparing it to its historical volatility, Aemetis is 3.7 times less risky than VivoPower International. It trades about 0.01 of its potential returns per unit of risk. VivoPower International PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 180.00 in VivoPower International PLC on August 29, 2024 and sell it today you would lose (68.00) from holding VivoPower International PLC or give up 37.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aemetis vs. VivoPower International PLC
Performance |
| Timeline |
| Aemetis |
| VivoPower International |
Aemetis and VivoPower International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aemetis and VivoPower International
The main advantage of trading using opposite Aemetis and VivoPower International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aemetis position performs unexpectedly, VivoPower International 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 VivoPower International will offset losses from the drop in VivoPower International's long position.| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. Vertex Energy |
| VivoPower International vs. Emeren Group | VivoPower International vs. Tigo Energy | VivoPower International vs. Sunrun Inc | VivoPower International vs. Sunnova Energy International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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