Correlation Between First National and Atlantica Sustainable
Can any of the company-specific risk be diversified away by investing in both First National and Atlantica Sustainable 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 First National and Atlantica Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First National Energy and Atlantica Sustainable Infrastructure, you can compare the effects of market volatilities on First National and Atlantica Sustainable 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 First National with a short position of Atlantica Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and Atlantica Sustainable.
Diversification Opportunities for First National and Atlantica Sustainable
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Atlantica is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding First National Energy and Atlantica Sustainable Infrastr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantica Sustainable and First National 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 First National Energy are associated (or correlated) with Atlantica Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantica Sustainable has no effect on the direction of First National i.e., First National and Atlantica Sustainable go up and down completely randomly.
Pair Corralation between First National and Atlantica Sustainable
Given the investment horizon of 90 days First National Energy is expected to generate 142.38 times more return on investment than Atlantica Sustainable. However, First National is 142.38 times more volatile than Atlantica Sustainable Infrastructure. It trades about 0.0 of its potential returns per unit of risk. Atlantica Sustainable Infrastructure is currently generating about 0.2 per unit of risk. If you would invest 64.00 in First National Energy on August 31, 2024 and sell it today you would lose (54.94) from holding First National Energy or give up 85.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First National Energy vs. Atlantica Sustainable Infrastr
Performance |
| Timeline |
| First National Energy |
| Atlantica Sustainable |
First National and Atlantica Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and Atlantica Sustainable
The main advantage of trading using opposite First National and Atlantica Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National position performs unexpectedly, Atlantica Sustainable 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 Atlantica Sustainable will offset losses from the drop in Atlantica Sustainable's long position.| First National vs. Kontrol Technologies Corp | First National vs. PwrCor Inc | First National vs. 808 Renewable Energy | First National vs. Boralex |
| Atlantica Sustainable vs. Verde Clean Fuels | Atlantica Sustainable vs. Ellomay Capital | Atlantica Sustainable vs. Eco Wave Power | Atlantica Sustainable vs. Fluence 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |