Correlation Between Atlantica Sustainable and Energy Vault
Can any of the company-specific risk be diversified away by investing in both Atlantica Sustainable and Energy Vault 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 Energy Vault 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 Energy Vault Holdings, you can compare the effects of market volatilities on Atlantica Sustainable and Energy Vault 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 Energy Vault. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantica Sustainable and Energy Vault.
Diversification Opportunities for Atlantica Sustainable and Energy Vault
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlantica and Energy is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Atlantica Sustainable Infrastr and Energy Vault Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Vault Holdings 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 Energy Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Vault Holdings has no effect on the direction of Atlantica Sustainable i.e., Atlantica Sustainable and Energy Vault go up and down completely randomly.
Pair Corralation between Atlantica Sustainable and Energy Vault
Allowing for the 90-day total investment horizon Atlantica Sustainable is expected to generate 11.98 times less return on investment than Energy Vault. But when comparing it to its historical volatility, Atlantica Sustainable Infrastructure is 213.88 times less risky than Energy Vault. It trades about 0.49 of its potential returns per unit of risk. Energy Vault Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Energy Vault Holdings on November 1, 2024 and sell it today you would lose (19.00) from holding Energy Vault Holdings or give up 9.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 48.33% |
| Values | Daily Returns |
Atlantica Sustainable Infrastr vs. Energy Vault Holdings
Performance |
| Timeline |
| Atlantica Sustainable |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Energy Vault Holdings |
Atlantica Sustainable and Energy Vault Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantica Sustainable and Energy Vault
The main advantage of trading using opposite Atlantica Sustainable and Energy Vault positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantica Sustainable position performs unexpectedly, Energy Vault 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 Energy Vault will offset losses from the drop in Energy Vault'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 |
| Energy Vault vs. Renew Energy Global | Energy Vault vs. Fluence Energy | Energy Vault vs. Enlight Renewable Energy | Energy Vault 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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