Correlation Between Atkore International and Tecogen
Can any of the company-specific risk be diversified away by investing in both Atkore International and Tecogen 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 Atkore International and Tecogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atkore International Group and Tecogen, you can compare the effects of market volatilities on Atkore International and Tecogen 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 Atkore International with a short position of Tecogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atkore International and Tecogen.
Diversification Opportunities for Atkore International and Tecogen
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atkore and Tecogen is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Atkore International Group and Tecogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecogen and Atkore International 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 Atkore International Group are associated (or correlated) with Tecogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecogen has no effect on the direction of Atkore International i.e., Atkore International and Tecogen go up and down completely randomly.
Pair Corralation between Atkore International and Tecogen
If you would invest 107.00 in Tecogen on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Tecogen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.44% |
| Values | Daily Returns |
Atkore International Group vs. Tecogen
Performance |
| Timeline |
| Atkore International |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atkore International and Tecogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atkore International and Tecogen
The main advantage of trading using opposite Atkore International and Tecogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atkore International position performs unexpectedly, Tecogen 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 Tecogen will offset losses from the drop in Tecogen's long position.| Atkore International vs. Hubbell | Atkore International vs. Enersys | Atkore International vs. Advanced Energy Industries | Atkore International vs. nVent Electric PLC |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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