Correlation Between Tecogen and Axion Power
Can any of the company-specific risk be diversified away by investing in both Tecogen and Axion 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 Tecogen and Axion Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecogen and Axion Power International, you can compare the effects of market volatilities on Tecogen and Axion 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 Tecogen with a short position of Axion Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecogen and Axion Power.
Diversification Opportunities for Tecogen and Axion Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tecogen and Axion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen and Axion Power International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axion Power International and Tecogen 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 Tecogen are associated (or correlated) with Axion Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axion Power International has no effect on the direction of Tecogen i.e., Tecogen and Axion Power go up and down completely randomly.
Pair Corralation between Tecogen and Axion Power
If you would invest 0.01 in Axion Power International on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Axion Power International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 28.3% |
| Values | Daily Returns |
Tecogen vs. Axion Power International
Performance |
| Timeline |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Axion Power International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tecogen and Axion Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecogen and Axion Power
The main advantage of trading using opposite Tecogen and Axion Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecogen position performs unexpectedly, Axion 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 Axion Power will offset losses from the drop in Axion Power's long position.| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
| Axion Power vs. AFC Energy plc | Axion Power vs. ADS TEC ENERGY PLC | Axion Power vs. ABB | Axion Power vs. Ads Tec 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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