Correlation Between Hannon Armstrong and XL Fleet
Can any of the company-specific risk be diversified away by investing in both Hannon Armstrong and XL Fleet 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 XL Fleet 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 XL Fleet Corp, you can compare the effects of market volatilities on Hannon Armstrong and XL Fleet 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 XL Fleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannon Armstrong and XL Fleet.
Diversification Opportunities for Hannon Armstrong and XL Fleet
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hannon and XL Fleet is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hannon Armstrong Sustainable and XL Fleet Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XL Fleet Corp 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 XL Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XL Fleet Corp has no effect on the direction of Hannon Armstrong i.e., Hannon Armstrong and XL Fleet go up and down completely randomly.
Pair Corralation between Hannon Armstrong and XL Fleet
If you would invest 3,199 in Hannon Armstrong Sustainable on September 2, 2024 and sell it today you would lose (63.00) from holding Hannon Armstrong Sustainable or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Hannon Armstrong Sustainable vs. XL Fleet Corp
Performance |
| Timeline |
| Hannon Armstrong Sus |
| XL Fleet Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hannon Armstrong and XL Fleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hannon Armstrong and XL Fleet
The main advantage of trading using opposite Hannon Armstrong and XL Fleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannon Armstrong position performs unexpectedly, XL Fleet 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 XL Fleet will offset losses from the drop in XL Fleet's long position.| Hannon Armstrong vs. Equinix | Hannon Armstrong vs. Crown Castle | Hannon Armstrong vs. American Tower Corp | Hannon Armstrong vs. Iron Mountain Incorporated |
| XL Fleet vs. Nasdaq Inc | XL Fleet vs. Sphere Entertainment Co | XL Fleet vs. Verde Clean Fuels | XL Fleet vs. Small Cap Premium |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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