Correlation Between Transportadora and Fluence Energy
Can any of the company-specific risk be diversified away by investing in both Transportadora and Fluence Energy 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 Transportadora and Fluence Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and Fluence Energy, you can compare the effects of market volatilities on Transportadora and Fluence Energy 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 Transportadora with a short position of Fluence Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Fluence Energy.
Diversification Opportunities for Transportadora and Fluence Energy
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Transportadora and Fluence is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Fluence Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluence Energy and Transportadora 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 Transportadora de Gas are associated (or correlated) with Fluence Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluence Energy has no effect on the direction of Transportadora i.e., Transportadora and Fluence Energy go up and down completely randomly.
Pair Corralation between Transportadora and Fluence Energy
Considering the 90-day investment horizon Transportadora de Gas is expected to generate 0.74 times more return on investment than Fluence Energy. However, Transportadora de Gas is 1.35 times less risky than Fluence Energy. It trades about 0.08 of its potential returns per unit of risk. Fluence Energy is currently generating about 0.02 per unit of risk. If you would invest 1,190 in Transportadora de Gas on August 30, 2024 and sell it today you would earn a total of 1,729 from holding Transportadora de Gas or generate 145.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. Fluence Energy
Performance |
| Timeline |
| Transportadora de Gas |
| Fluence Energy |
Transportadora and Fluence Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Fluence Energy
The main advantage of trading using opposite Transportadora and Fluence Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, Fluence Energy 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 Fluence Energy will offset losses from the drop in Fluence Energy's long position.| Transportadora vs. Petroleo Brasileiro Petrobras | Transportadora vs. Ecopetrol SA ADR | Transportadora vs. Petrleo Brasileiro SA | Transportadora vs. Equinor ASA ADR |
| Fluence Energy vs. Altus Power | Fluence Energy vs. Ormat Technologies | Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Advent Technologies Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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