Correlation Between Fusion Fuel and Astra Energy
Can any of the company-specific risk be diversified away by investing in both Fusion Fuel 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 Fusion Fuel and Astra Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusion Fuel Green and Astra Energy, you can compare the effects of market volatilities on Fusion Fuel 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 Fusion Fuel with a short position of Astra Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusion Fuel and Astra Energy.
Diversification Opportunities for Fusion Fuel and Astra Energy
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fusion and Astra is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Fuel Green and Astra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Energy and Fusion Fuel 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 Fusion Fuel Green 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 Fusion Fuel i.e., Fusion Fuel and Astra Energy go up and down completely randomly.
Pair Corralation between Fusion Fuel and Astra Energy
Assuming the 90 days horizon Fusion Fuel Green is expected to generate 2.97 times more return on investment than Astra Energy. However, Fusion Fuel is 2.97 times more volatile than Astra Energy. It trades about 0.03 of its potential returns per unit of risk. Astra Energy is currently generating about -0.04 per unit of risk. If you would invest 14.00 in Fusion Fuel Green on August 24, 2024 and sell it today you would lose (13.00) from holding Fusion Fuel Green or give up 92.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Fusion Fuel Green vs. Astra Energy
Performance |
| Timeline |
| Fusion Fuel Green |
| Astra Energy |
Fusion Fuel and Astra Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fusion Fuel and Astra Energy
The main advantage of trading using opposite Fusion Fuel and Astra Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusion Fuel 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.| Fusion Fuel vs. Fusion Fuel Green | Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Eos Energy Enterprises | Fusion Fuel vs. CuriosityStream |
| Astra Energy vs. Constellation Energy Corp | Astra Energy vs. Verbund AG ADR | Astra Energy vs. Orsted AS ADR | Astra Energy vs. Orsted AS |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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