Correlation Between Excelerate Energy and Aemetis
Can any of the company-specific risk be diversified away by investing in both Excelerate Energy and Aemetis 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 Excelerate Energy and Aemetis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelerate Energy and Aemetis, you can compare the effects of market volatilities on Excelerate Energy and Aemetis 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 Excelerate Energy with a short position of Aemetis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelerate Energy and Aemetis.
Diversification Opportunities for Excelerate Energy and Aemetis
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Excelerate and Aemetis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Excelerate Energy and Aemetis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aemetis and Excelerate Energy 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 Excelerate Energy are associated (or correlated) with Aemetis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aemetis has no effect on the direction of Excelerate Energy i.e., Excelerate Energy and Aemetis go up and down completely randomly.
Pair Corralation between Excelerate Energy and Aemetis
Allowing for the 90-day total investment horizon Excelerate Energy is expected to generate 0.47 times more return on investment than Aemetis. However, Excelerate Energy is 2.14 times less risky than Aemetis. It trades about 0.19 of its potential returns per unit of risk. Aemetis is currently generating about 0.05 per unit of risk. If you would invest 1,701 in Excelerate Energy on August 24, 2024 and sell it today you would earn a total of 1,341 from holding Excelerate Energy or generate 78.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelerate Energy vs. Aemetis
Performance |
| Timeline |
| Excelerate Energy |
| Aemetis |
Excelerate Energy and Aemetis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelerate Energy and Aemetis
The main advantage of trading using opposite Excelerate Energy and Aemetis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelerate Energy position performs unexpectedly, Aemetis 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 Aemetis will offset losses from the drop in Aemetis' long position.| Excelerate Energy vs. Atlantica Sustainable Infrastructure | Excelerate Energy vs. Clearway Energy | Excelerate Energy vs. Brookfield Renewable Corp | Excelerate Energy vs. Nextera Energy Partners |
| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. Vertex 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |