Correlation Between Hannon Armstrong and Ameresco
Can any of the company-specific risk be diversified away by investing in both Hannon Armstrong and Ameresco 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 Hannon Armstrong and Ameresco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hannon Armstrong Sustainable and Ameresco, you can compare the effects of market volatilities on Hannon Armstrong and Ameresco 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 Hannon Armstrong with a short position of Ameresco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannon Armstrong and Ameresco.
Diversification Opportunities for Hannon Armstrong and Ameresco
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hannon and Ameresco is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hannon Armstrong Sustainable and Ameresco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameresco and Hannon Armstrong 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 Hannon Armstrong Sustainable are associated (or correlated) with Ameresco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameresco has no effect on the direction of Hannon Armstrong i.e., Hannon Armstrong and Ameresco go up and down completely randomly.
Pair Corralation between Hannon Armstrong and Ameresco
Given the investment horizon of 90 days Hannon Armstrong Sustainable is expected to generate 0.75 times more return on investment than Ameresco. However, Hannon Armstrong Sustainable is 1.33 times less risky than Ameresco. It trades about 0.02 of its potential returns per unit of risk. Ameresco is currently generating about -0.02 per unit of risk. If you would invest 2,731 in Hannon Armstrong Sustainable on August 28, 2024 and sell it today you would earn a total of 311.00 from holding Hannon Armstrong Sustainable or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hannon Armstrong Sustainable vs. Ameresco
Performance |
| Timeline |
| Hannon Armstrong Sus |
| Ameresco |
Hannon Armstrong and Ameresco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hannon Armstrong and Ameresco
The main advantage of trading using opposite Hannon Armstrong and Ameresco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannon Armstrong position performs unexpectedly, Ameresco 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 Ameresco will offset losses from the drop in Ameresco's long position.| Hannon Armstrong vs. Equinix | Hannon Armstrong vs. Crown Castle | Hannon Armstrong vs. American Tower Corp | Hannon Armstrong vs. Iron Mountain Incorporated |
| Ameresco vs. TPI Composites | Ameresco vs. Hannon Armstrong Sustainable | Ameresco vs. Atkore International Group | Ameresco vs. Daqo 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |