Correlation Between Quanta Services and Ameresco
Can any of the company-specific risk be diversified away by investing in both Quanta Services and Ameresco 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 Quanta Services and Ameresco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanta Services and Ameresco, you can compare the effects of market volatilities on Quanta Services and Ameresco 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 Quanta Services with a short position of Ameresco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanta Services and Ameresco.
Diversification Opportunities for Quanta Services and Ameresco
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quanta and Ameresco is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Quanta Services and Ameresco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameresco and Quanta Services 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 Quanta Services are associated (or correlated) with Ameresco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameresco has no effect on the direction of Quanta Services i.e., Quanta Services and Ameresco go up and down completely randomly.
Pair Corralation between Quanta Services and Ameresco
Considering the 90-day investment horizon Quanta Services is expected to generate 0.23 times more return on investment than Ameresco. However, Quanta Services is 4.34 times less risky than Ameresco. It trades about 0.47 of its potential returns per unit of risk. Ameresco is currently generating about -0.04 per unit of risk. If you would invest 30,163 in Quanta Services on September 1, 2024 and sell it today you would earn a total of 4,289 from holding Quanta Services or generate 14.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quanta Services vs. Ameresco
Performance |
| Timeline |
| Quanta Services |
| Ameresco |
Quanta Services and Ameresco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanta Services and Ameresco
The main advantage of trading using opposite Quanta Services and Ameresco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanta Services position performs unexpectedly, Ameresco 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 Ameresco will offset losses from the drop in Ameresco's long position.| Quanta Services vs. MYR Group | Quanta Services vs. Dycom Industries | Quanta Services vs. EMCOR Group | Quanta Services vs. Comfort Systems USA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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