Correlation Between Plug Power and Atkore International
Can any of the company-specific risk be diversified away by investing in both Plug Power and Atkore International 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 Plug Power and Atkore International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plug Power and Atkore International Group, you can compare the effects of market volatilities on Plug Power and Atkore International 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 Plug Power with a short position of Atkore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and Atkore International.
Diversification Opportunities for Plug Power and Atkore International
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Plug and Atkore is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and Atkore International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atkore International and Plug Power 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 Plug Power are associated (or correlated) with Atkore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atkore International has no effect on the direction of Plug Power i.e., Plug Power and Atkore International go up and down completely randomly.
Pair Corralation between Plug Power and Atkore International
Given the investment horizon of 90 days Plug Power is expected to generate 4.71 times less return on investment than Atkore International. In addition to that, Plug Power is 1.91 times more volatile than Atkore International Group. It trades about 0.01 of its total potential returns per unit of risk. Atkore International Group is currently generating about 0.1 per unit of volatility. If you would invest 8,821 in Atkore International Group on August 29, 2024 and sell it today you would earn a total of 674.00 from holding Atkore International Group or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plug Power vs. Atkore International Group
Performance |
| Timeline |
| Plug Power |
| Atkore International |
Plug Power and Atkore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and Atkore International
The main advantage of trading using opposite Plug Power and Atkore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, Atkore International 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 Atkore International will offset losses from the drop in Atkore International's long position.| Plug Power vs. Bloom Energy Corp | Plug Power vs. Microvast Holdings | Plug Power vs. Solid Power | Plug Power vs. CBAK Energy Technology |
| Atkore International vs. Hubbell | Atkore International vs. Enersys | Atkore International vs. Advanced Energy Industries | Atkore International vs. nVent Electric PLC |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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