Correlation Between American Security and Heliogen
Can any of the company-specific risk be diversified away by investing in both American Security and Heliogen 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 American Security and Heliogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Security Resources and Heliogen, you can compare the effects of market volatilities on American Security and Heliogen 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 American Security with a short position of Heliogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Security and Heliogen.
Diversification Opportunities for American Security and Heliogen
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Heliogen is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding American Security Resources and Heliogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliogen and American Security 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 American Security Resources are associated (or correlated) with Heliogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliogen has no effect on the direction of American Security i.e., American Security and Heliogen go up and down completely randomly.
Pair Corralation between American Security and Heliogen
If you would invest 0.01 in American Security Resources on October 24, 2024 and sell it today you would earn a total of 0.00 from holding American Security Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
American Security Resources vs. Heliogen
Performance |
| Timeline |
| American Security |
| Heliogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Security and Heliogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Security and Heliogen
The main advantage of trading using opposite American Security and Heliogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Security position performs unexpectedly, Heliogen 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 Heliogen will offset losses from the drop in Heliogen's long position.| American Security vs. Astra Energy | American Security vs. Alternus Energy Group | American Security vs. Carnegie Clean Energy | American Security vs. Triad Pro Innovators |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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