Correlation Between Atlantic Wind and Astra Energy
Can any of the company-specific risk be diversified away by investing in both Atlantic Wind and Astra 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 Atlantic Wind and Astra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Wind Solar and Astra Energy, you can compare the effects of market volatilities on Atlantic Wind and Astra 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 Atlantic Wind with a short position of Astra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Wind and Astra Energy.
Diversification Opportunities for Atlantic Wind and Astra Energy
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlantic and Astra is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Wind Solar and Astra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Energy and Atlantic Wind 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 Atlantic Wind Solar are associated (or correlated) with Astra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Energy has no effect on the direction of Atlantic Wind i.e., Atlantic Wind and Astra Energy go up and down completely randomly.
Pair Corralation between Atlantic Wind and Astra Energy
Given the investment horizon of 90 days Atlantic Wind Solar is expected to under-perform the Astra Energy. In addition to that, Atlantic Wind is 1.23 times more volatile than Astra Energy. It trades about -0.06 of its total potential returns per unit of risk. Astra Energy is currently generating about -0.01 per unit of volatility. If you would invest 13.00 in Astra Energy on August 30, 2024 and sell it today you would lose (2.00) from holding Astra Energy or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantic Wind Solar vs. Astra Energy
Performance |
| Timeline |
| Atlantic Wind Solar |
| Astra Energy |
Atlantic Wind and Astra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Wind and Astra Energy
The main advantage of trading using opposite Atlantic Wind and Astra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Wind position performs unexpectedly, Astra 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 Astra Energy will offset losses from the drop in Astra Energy's long position.| Atlantic Wind vs. Green Stream Holdings | Atlantic Wind vs. VirExit Technologies | Atlantic Wind vs. Clean Vision Corp | Atlantic Wind vs. SolarWindow Technologies |
| Astra Energy vs. Alternus Energy Group | Astra Energy vs. American Security Resources | Astra Energy vs. Carnegie Clean Energy | Astra Energy vs. Altius Renewable Royalties |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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