Correlation Between Kansai Electric and Altus Power
Can any of the company-specific risk be diversified away by investing in both Kansai Electric and Altus Power 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 Kansai Electric and Altus Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Kansai Electric and Altus Power, you can compare the effects of market volatilities on Kansai Electric and Altus Power 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 Kansai Electric with a short position of Altus Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kansai Electric and Altus Power.
Diversification Opportunities for Kansai Electric and Altus Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kansai and Altus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Kansai Electric and Altus Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altus Power and Kansai Electric 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 The Kansai Electric are associated (or correlated) with Altus Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altus Power has no effect on the direction of Kansai Electric i.e., Kansai Electric and Altus Power go up and down completely randomly.
Pair Corralation between Kansai Electric and Altus Power
If you would invest 359.00 in Altus Power on August 31, 2024 and sell it today you would earn a total of 77.00 from holding Altus Power or generate 21.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
The Kansai Electric vs. Altus Power
Performance |
| Timeline |
| Kansai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Altus Power |
Kansai Electric and Altus Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kansai Electric and Altus Power
The main advantage of trading using opposite Kansai Electric and Altus Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kansai Electric position performs unexpectedly, Altus Power 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 Altus Power will offset losses from the drop in Altus Power's long position.| Kansai Electric vs. NioCorp Developments Ltd | Kansai Electric vs. Paiute Oil Mining | Kansai Electric vs. Chester Mining | Kansai Electric vs. Harmony Gold Mining |
| Altus Power vs. Ormat Technologies | Altus Power vs. Enlight Renewable Energy | Altus Power vs. Fluence Energy | Altus Power vs. Renew Energy Global |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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