Correlation Between Atlantica Sustainable and Fortum Oyj
Can any of the company-specific risk be diversified away by investing in both Atlantica Sustainable and Fortum Oyj 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 Atlantica Sustainable and Fortum Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantica Sustainable Infrastructure and Fortum Oyj ADR, you can compare the effects of market volatilities on Atlantica Sustainable and Fortum Oyj 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 Atlantica Sustainable with a short position of Fortum Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantica Sustainable and Fortum Oyj.
Diversification Opportunities for Atlantica Sustainable and Fortum Oyj
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlantica and Fortum is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Atlantica Sustainable Infrastr and Fortum Oyj ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortum Oyj ADR and Atlantica Sustainable 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 Atlantica Sustainable Infrastructure are associated (or correlated) with Fortum Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortum Oyj ADR has no effect on the direction of Atlantica Sustainable i.e., Atlantica Sustainable and Fortum Oyj go up and down completely randomly.
Pair Corralation between Atlantica Sustainable and Fortum Oyj
If you would invest 287.00 in Fortum Oyj ADR on November 4, 2024 and sell it today you would earn a total of 2.00 from holding Fortum Oyj ADR or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Atlantica Sustainable Infrastr vs. Fortum Oyj ADR
Performance |
| Timeline |
| Atlantica Sustainable |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Excellent
| Fortum Oyj ADR |
Atlantica Sustainable and Fortum Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantica Sustainable and Fortum Oyj
The main advantage of trading using opposite Atlantica Sustainable and Fortum Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantica Sustainable position performs unexpectedly, Fortum Oyj 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 Fortum Oyj will offset losses from the drop in Fortum Oyj's long position.| Atlantica Sustainable vs. Clearway Energy | Atlantica Sustainable vs. Brookfield Renewable Corp | Atlantica Sustainable vs. Nextera Energy Partners | Atlantica Sustainable vs. Brookfield Renewable Partners |
| Fortum Oyj vs. Constellation Energy Corp | Fortum Oyj vs. Astra Energy | Fortum Oyj vs. Powertap Hydrogen Capital | Fortum Oyj vs. Brenmiller Energy Ltd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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