Correlation Between Innergex Renewable and Atlantica Sustainable
Can any of the company-specific risk be diversified away by investing in both Innergex Renewable 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 Innergex Renewable and Atlantica Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innergex Renewable Energy and Atlantica Sustainable Infrastructure, you can compare the effects of market volatilities on Innergex Renewable 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 Innergex Renewable with a short position of Atlantica Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innergex Renewable and Atlantica Sustainable.
Diversification Opportunities for Innergex Renewable and Atlantica Sustainable
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Innergex and Atlantica is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Innergex Renewable 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 Innergex Renewable 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 Innergex Renewable 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 Innergex Renewable i.e., Innergex Renewable and Atlantica Sustainable go up and down completely randomly.
Pair Corralation between Innergex Renewable and Atlantica Sustainable
Assuming the 90 days horizon Innergex Renewable Energy is expected to under-perform the Atlantica Sustainable. In addition to that, Innergex Renewable is 20.08 times more volatile than Atlantica Sustainable Infrastructure. It trades about -0.34 of its total potential returns per unit of risk. Atlantica Sustainable Infrastructure is currently generating about 0.31 per unit of volatility. If you would invest 2,200 in Atlantica Sustainable Infrastructure on August 24, 2024 and sell it today you would earn a total of 14.00 from holding Atlantica Sustainable Infrastructure or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innergex Renewable Energy vs. Atlantica Sustainable Infrastr
Performance |
| Timeline |
| Innergex Renewable Energy |
| Atlantica Sustainable |
Innergex Renewable and Atlantica Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innergex Renewable and Atlantica Sustainable
The main advantage of trading using opposite Innergex Renewable and Atlantica Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innergex Renewable 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.| Innergex Renewable vs. Orsted AS | Innergex Renewable vs. Clearway Energy | Innergex Renewable vs. Fusion Fuel Green | Innergex Renewable vs. Powertap Hydrogen Capital |
| Atlantica Sustainable vs. Clearway Energy | Atlantica Sustainable vs. Brookfield Renewable Corp | Atlantica Sustainable vs. Nextera Energy Partners | Atlantica Sustainable vs. Brookfield Renewable Partners |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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