Correlation Between Atlantica Sustainable and Spark Power
Can any of the company-specific risk be diversified away by investing in both Atlantica Sustainable and Spark Power 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 Spark Power 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 Spark Power Group, you can compare the effects of market volatilities on Atlantica Sustainable and Spark Power 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 Spark Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantica Sustainable and Spark Power.
Diversification Opportunities for Atlantica Sustainable and Spark Power
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlantica and Spark is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Atlantica Sustainable Infrastr and Spark Power Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spark Power Group 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 Spark Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spark Power Group has no effect on the direction of Atlantica Sustainable i.e., Atlantica Sustainable and Spark Power go up and down completely randomly.
Pair Corralation between Atlantica Sustainable and Spark Power
If you would invest 27.00 in Spark Power Group on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Spark Power Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantica Sustainable Infrastr vs. Spark Power Group
Performance |
| Timeline |
| Atlantica Sustainable |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Excellent
| Spark Power Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlantica Sustainable and Spark Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantica Sustainable and Spark Power
The main advantage of trading using opposite Atlantica Sustainable and Spark Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantica Sustainable position performs unexpectedly, Spark Power 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 Spark Power will offset losses from the drop in Spark Power'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 |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |