Correlation Between Stantec and Ameresco
Can any of the company-specific risk be diversified away by investing in both Stantec 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 Stantec and Ameresco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stantec and Ameresco, you can compare the effects of market volatilities on Stantec 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 Stantec with a short position of Ameresco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stantec and Ameresco.
Diversification Opportunities for Stantec and Ameresco
Very good diversification
The 3 months correlation between Stantec and Ameresco is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Stantec and Ameresco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameresco and Stantec 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 Stantec 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 Stantec i.e., Stantec and Ameresco go up and down completely randomly.
Pair Corralation between Stantec and Ameresco
Considering the 90-day investment horizon Stantec is expected to generate 0.3 times more return on investment than Ameresco. However, Stantec is 3.32 times less risky than Ameresco. It trades about 0.01 of its potential returns per unit of risk. Ameresco is currently generating about -0.02 per unit of risk. If you would invest 8,549 in Stantec on August 27, 2024 and sell it today you would earn a total of 48.00 from holding Stantec or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stantec vs. Ameresco
Performance |
| Timeline |
| Stantec |
| Ameresco |
Stantec and Ameresco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stantec and Ameresco
The main advantage of trading using opposite Stantec and Ameresco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stantec 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.| Stantec vs. EMCOR Group | Stantec vs. Comfort Systems USA | Stantec vs. Primoris Services | Stantec vs. Granite Construction Incorporated |
| Ameresco vs. TPI Composites | Ameresco vs. Hannon Armstrong Sustainable | Ameresco vs. Atkore International Group | Ameresco vs. Daqo New Energy |
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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