Correlation Between Alliant Energy and Concord Acquisition
Can any of the company-specific risk be diversified away by investing in both Alliant Energy and Concord Acquisition 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 Alliant Energy and Concord Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliant Energy Corp and Concord Acquisition Corp, you can compare the effects of market volatilities on Alliant Energy and Concord Acquisition 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 Alliant Energy with a short position of Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliant Energy and Concord Acquisition.
Diversification Opportunities for Alliant Energy and Concord Acquisition
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alliant and Concord is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Alliant Energy Corp and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Acquisition Corp and Alliant Energy 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 Alliant Energy Corp are associated (or correlated) with Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of Alliant Energy i.e., Alliant Energy and Concord Acquisition go up and down completely randomly.
Pair Corralation between Alliant Energy and Concord Acquisition
If you would invest 6,064 in Alliant Energy Corp on August 27, 2024 and sell it today you would earn a total of 268.00 from holding Alliant Energy Corp or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Alliant Energy Corp vs. Concord Acquisition Corp
Performance |
| Timeline |
| Alliant Energy Corp |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alliant Energy and Concord Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliant Energy and Concord Acquisition
The main advantage of trading using opposite Alliant Energy and Concord Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliant Energy position performs unexpectedly, Concord Acquisition 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 Concord Acquisition will offset losses from the drop in Concord Acquisition's long position.| Alliant Energy vs. DTE Energy | Alliant Energy vs. Ameren Corp | Alliant Energy vs. CenterPoint Energy | Alliant Energy vs. Pinnacle West Capital |
| Concord Acquisition vs. Fluence Energy | Concord Acquisition vs. Chester Mining | Concord Acquisition vs. Western Acquisition Ventures | Concord Acquisition vs. Alliant Energy Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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