Correlation Between Tecogen and FuelPositive Corp
Can any of the company-specific risk be diversified away by investing in both Tecogen and FuelPositive Corp 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 FuelPositive Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecogen and FuelPositive Corp, you can compare the effects of market volatilities on Tecogen and FuelPositive Corp 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 FuelPositive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecogen and FuelPositive Corp.
Diversification Opportunities for Tecogen and FuelPositive Corp
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tecogen and FuelPositive is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen and FuelPositive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelPositive Corp 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 FuelPositive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelPositive Corp has no effect on the direction of Tecogen i.e., Tecogen and FuelPositive Corp go up and down completely randomly.
Pair Corralation between Tecogen and FuelPositive Corp
If you would invest 2.33 in FuelPositive Corp on August 28, 2024 and sell it today you would lose (0.33) from holding FuelPositive Corp or give up 14.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Tecogen vs. FuelPositive Corp
Performance |
| Timeline |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FuelPositive Corp |
Tecogen and FuelPositive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecogen and FuelPositive Corp
The main advantage of trading using opposite Tecogen and FuelPositive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecogen position performs unexpectedly, FuelPositive Corp 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 FuelPositive Corp will offset losses from the drop in FuelPositive Corp's long position.| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
| FuelPositive Corp vs. AmmPower Corp | FuelPositive Corp vs. FuelPositive Corp | FuelPositive Corp vs. Graphene Manufacturing Group | FuelPositive Corp vs. Exro Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |