Correlation Between Orsted AS and Concord New
Can any of the company-specific risk be diversified away by investing in both Orsted AS and Concord New 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 Orsted AS and Concord New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orsted AS and Concord New Energy, you can compare the effects of market volatilities on Orsted AS and Concord New 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 Orsted AS with a short position of Concord New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orsted AS and Concord New.
Diversification Opportunities for Orsted AS and Concord New
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orsted and Concord is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Orsted AS and Concord New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord New Energy and Orsted AS 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 Orsted AS are associated (or correlated) with Concord New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord New Energy has no effect on the direction of Orsted AS i.e., Orsted AS and Concord New go up and down completely randomly.
Pair Corralation between Orsted AS and Concord New
Assuming the 90 days horizon Orsted AS is expected to under-perform the Concord New. But the pink sheet apears to be less risky and, when comparing its historical volatility, Orsted AS is 1.51 times less risky than Concord New. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Concord New Energy is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8.00 in Concord New Energy on August 24, 2024 and sell it today you would lose (1.00) from holding Concord New Energy or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.22% |
| Values | Daily Returns |
Orsted AS vs. Concord New Energy
Performance |
| Timeline |
| Orsted AS |
| Concord New Energy |
Orsted AS and Concord New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orsted AS and Concord New
The main advantage of trading using opposite Orsted AS and Concord New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orsted AS position performs unexpectedly, Concord New 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 Concord New will offset losses from the drop in Concord New's long position.| Orsted AS vs. Innergex Renewable Energy | Orsted AS vs. Clearway Energy | Orsted AS vs. Fusion Fuel Green | Orsted AS vs. Powertap Hydrogen Capital |
| Concord New vs. Renew Energy Global | Concord New vs. Energy Vault Holdings | Concord New vs. Fluence Energy | Concord New 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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