Correlation Between Atlantica Sustainable and Ellomay Capital

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

By analyzing existing cross correlation between Atlantica Sustainable Infrastructure and Ellomay Capital, you can compare the effects of market volatilities on Atlantica Sustainable and Ellomay Capital 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 Atlantica Sustainable with a short position of Ellomay Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantica Sustainable and Ellomay Capital.

Diversification Opportunities for Atlantica Sustainable and Ellomay Capital

0.0

Correlation Coefficient

Atlantica Sustainable  Ellomay Capital

Pay attention - limited upside

The 3 months correlation between Atlantica and Ellomay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atlantica Sustainable Infrastr and Ellomay Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellomay Capital and Atlantica Sustainable 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 Atlantica Sustainable Infrastructure are associated (or correlated) with Ellomay Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellomay Capital has no effect on the direction of Atlantica Sustainable i.e., Atlantica Sustainable and Ellomay Capital go up and down completely randomly.

Pair Corralation between Atlantica Sustainable and Ellomay Capital

If you would invest (100.00) in Atlantica Sustainable Infrastructure on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Atlantica Sustainable Infrastructure or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Atlantica Sustainable Infrastr  vs.  Ellomay Capital

Atlantica Sustainable

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atlantica Sustainable Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Atlantica Sustainable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ellomay Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ellomay Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Ellomay Capital is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Atlantica Sustainable and Ellomay Capital

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

The idea behind Atlantica Sustainable Infrastructure and Ellomay Capital 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.