Correlation Between Tecogen and Signify NV
Can any of the company-specific risk be diversified away by investing in both Tecogen and Signify NV 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 Signify NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tecogen and Signify NV, you can compare the effects of market volatilities on Tecogen and Signify NV 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 Signify NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecogen and Signify NV.
Diversification Opportunities for Tecogen and Signify NV
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tecogen and Signify is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen and Signify NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signify NV 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 Signify NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signify NV has no effect on the direction of Tecogen i.e., Tecogen and Signify NV go up and down completely randomly.
Pair Corralation between Tecogen and Signify NV
Given the investment horizon of 90 days Tecogen is expected to under-perform the Signify NV. In addition to that, Tecogen is 1.15 times more volatile than Signify NV. It trades about 0.0 of its total potential returns per unit of risk. Signify NV is currently generating about 0.0 per unit of volatility. If you would invest 1,740 in Signify NV on August 28, 2024 and sell it today you would lose (590.00) from holding Signify NV or give up 33.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 38.86% |
| Values | Daily Returns |
Tecogen vs. Signify NV
Performance |
| Timeline |
| Tecogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Signify NV |
Tecogen and Signify NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecogen and Signify NV
The main advantage of trading using opposite Tecogen and Signify NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecogen position performs unexpectedly, Signify NV 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 Signify NV will offset losses from the drop in Signify NV's long position.| Tecogen vs. Legrand SA ADR | Tecogen vs. AFC Energy plc | Tecogen vs. Loop Energy | Tecogen vs. Sunrise New Energy |
| Signify NV vs. FREYR Battery SA | Signify NV vs. nVent Electric PLC | Signify NV vs. Hubbell | Signify NV vs. Advanced Energy Industries |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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