Correlation Between Fluence Energy and Astra Energy
Can any of the company-specific risk be diversified away by investing in both Fluence Energy and Astra Energy 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 Fluence Energy and Astra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluence Energy and Astra Energy, you can compare the effects of market volatilities on Fluence Energy and Astra Energy 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 Fluence Energy with a short position of Astra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluence Energy and Astra Energy.
Diversification Opportunities for Fluence Energy and Astra Energy
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fluence and Astra is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fluence Energy and Astra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Energy and Fluence 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 Fluence Energy are associated (or correlated) with Astra Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Energy has no effect on the direction of Fluence Energy i.e., Fluence Energy and Astra Energy go up and down completely randomly.
Pair Corralation between Fluence Energy and Astra Energy
Given the investment horizon of 90 days Fluence Energy is expected to generate 3.31 times less return on investment than Astra Energy. But when comparing it to its historical volatility, Fluence Energy is 2.34 times less risky than Astra Energy. It trades about 0.03 of its potential returns per unit of risk. Astra Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Astra Energy on September 2, 2024 and sell it today you would lose (14.00) from holding Astra Energy or give up 56.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Fluence Energy vs. Astra Energy
Performance |
| Timeline |
| Fluence Energy |
| Astra Energy |
Fluence Energy and Astra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluence Energy and Astra Energy
The main advantage of trading using opposite Fluence Energy and Astra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluence Energy position performs unexpectedly, Astra Energy 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 Astra Energy will offset losses from the drop in Astra Energy's long position.| Fluence Energy vs. Altus Power | Fluence Energy vs. Ormat Technologies | Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Advent Technologies Holdings |
| Astra Energy vs. Constellation Energy Corp | Astra Energy vs. Orsted AS ADR | Astra Energy vs. HUMANA INC | Astra Energy vs. Aquagold International |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |