Correlation Between ATS and Clean Energy
Can any of the company-specific risk be diversified away by investing in both ATS and Clean 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 ATS and Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATS Corporation and Clean Energy Technologies,, you can compare the effects of market volatilities on ATS and Clean 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 ATS with a short position of Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATS and Clean Energy.
Diversification Opportunities for ATS and Clean Energy
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATS and Clean is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ATS Corp. and Clean Energy Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Energy Technol and ATS 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 ATS Corporation are associated (or correlated) with Clean Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Energy Technol has no effect on the direction of ATS i.e., ATS and Clean Energy go up and down completely randomly.
Pair Corralation between ATS and Clean Energy
Considering the 90-day investment horizon ATS is expected to generate 3.22 times less return on investment than Clean Energy. But when comparing it to its historical volatility, ATS Corporation is 2.7 times less risky than Clean Energy. It trades about 0.09 of its potential returns per unit of risk. Clean Energy Technologies, is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 67.00 in Clean Energy Technologies, on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Clean Energy Technologies, or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATS Corp. vs. Clean Energy Technologies,
Performance |
| Timeline |
| ATS Corporation |
| Clean Energy Technol |
ATS and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATS and Clean Energy
The main advantage of trading using opposite ATS and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATS position performs unexpectedly, Clean 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 Clean Energy will offset losses from the drop in Clean Energy's long position.| ATS vs. Aquagold International | ATS vs. Morningstar Unconstrained Allocation | ATS vs. High Yield Municipal Fund | ATS vs. Thrivent High Yield |
| Clean Energy vs. US Nuclear Corp | Clean Energy vs. Puration | Clean Energy vs. Appswarm | Clean Energy vs. Sun Pacific Holding |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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