Correlation Between Acuity Brands and Tecogen
Can any of the company-specific risk be diversified away by investing in both Acuity Brands and Tecogen 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 Acuity Brands and Tecogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acuity Brands and Tecogen, you can compare the effects of market volatilities on Acuity Brands and Tecogen 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 Acuity Brands with a short position of Tecogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acuity Brands and Tecogen.
Diversification Opportunities for Acuity Brands and Tecogen
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Acuity and Tecogen is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Acuity Brands and Tecogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecogen and Acuity Brands 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 Acuity Brands are associated (or correlated) with Tecogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecogen has no effect on the direction of Acuity Brands i.e., Acuity Brands and Tecogen go up and down completely randomly.
Pair Corralation between Acuity Brands and Tecogen
If you would invest 24,597 in Acuity Brands on September 3, 2024 and sell it today you would earn a total of 7,472 from holding Acuity Brands or generate 30.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Acuity Brands vs. Tecogen
Performance |
| Timeline |
| Acuity Brands |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acuity Brands and Tecogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acuity Brands and Tecogen
The main advantage of trading using opposite Acuity Brands and Tecogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acuity Brands position performs unexpectedly, Tecogen 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 Tecogen will offset losses from the drop in Tecogen's long position.| Acuity Brands vs. Bloom Energy Corp | Acuity Brands vs. Elong Power Holding | Acuity Brands vs. Enovix Corp | Acuity Brands vs. Sunrise New Energy |
| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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