Correlation Between Advent Technologies and View

Can any of the company-specific risk be diversified away by investing in both Advent Technologies and View 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 Advent Technologies and View into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advent Technologies Holdings and View Inc, you can compare the effects of market volatilities on Advent Technologies and View 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 Advent Technologies with a short position of View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and View.

Diversification Opportunities for Advent Technologies and View

-0.53

Correlation Coefficient

Advent Technologies  View

Excellent diversification

The 3 months correlation between Advent and View is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and View Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on View Inc and Advent Technologies 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 Advent Technologies Holdings are associated (or correlated) with View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of View Inc has no effect on the direction of Advent Technologies i.e., Advent Technologies and View go up and down completely randomly.

Pair Corralation between Advent Technologies and View

If you would invest  0.88  in Advent Technologies Holdings on September 13, 2024 and sell it today you would earn a total of  0.12  from holding Advent Technologies Holdings or generate 13.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Advent Technologies Holdings  vs.  View Inc

Advent Technologies

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Technologies Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Advent Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

View Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days View Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, View is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Advent Technologies and View

The main advantage of trading using opposite Advent Technologies and View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, View 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 View will offset losses from the drop in View's long position.

The idea behind Advent Technologies Holdings and View Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.