Correlation Between Altius Renewable and Fluence Energy
Can any of the company-specific risk be diversified away by investing in both Altius Renewable and Fluence Energy 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 Altius Renewable and Fluence Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altius Renewable Royalties and Fluence Energy, you can compare the effects of market volatilities on Altius Renewable and Fluence Energy 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 Altius Renewable with a short position of Fluence Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altius Renewable and Fluence Energy.
Diversification Opportunities for Altius Renewable and Fluence Energy
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altius and Fluence is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Altius Renewable Royalties and Fluence Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluence Energy and Altius Renewable 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 Altius Renewable Royalties are associated (or correlated) with Fluence Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluence Energy has no effect on the direction of Altius Renewable i.e., Altius Renewable and Fluence Energy go up and down completely randomly.
Pair Corralation between Altius Renewable and Fluence Energy
Assuming the 90 days horizon Altius Renewable is expected to generate 2.09 times less return on investment than Fluence Energy. But when comparing it to its historical volatility, Altius Renewable Royalties is 2.87 times less risky than Fluence Energy. It trades about 0.04 of its potential returns per unit of risk. Fluence Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,720 in Fluence Energy on September 2, 2024 and sell it today you would earn a total of 161.00 from holding Fluence Energy or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altius Renewable Royalties vs. Fluence Energy
Performance |
| Timeline |
| Altius Renewable Roy |
| Fluence Energy |
Altius Renewable and Fluence Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altius Renewable and Fluence Energy
The main advantage of trading using opposite Altius Renewable and Fluence Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altius Renewable position performs unexpectedly, Fluence Energy 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 Fluence Energy will offset losses from the drop in Fluence Energy's long position.| Altius Renewable vs. Astra Energy | Altius Renewable vs. Carnegie Clean Energy | Altius Renewable vs. Brenmiller Energy Ltd | Altius Renewable vs. Clean Vision Corp |
| Fluence Energy vs. Altus Power | Fluence Energy vs. Ormat Technologies | Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Advent Technologies 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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