Correlation Between Orsted A/S and Excelerate Energy
Can any of the company-specific risk be diversified away by investing in both Orsted A/S and Excelerate 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 Orsted A/S and Excelerate Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orsted AS ADR and Excelerate Energy, you can compare the effects of market volatilities on Orsted A/S and Excelerate 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 Orsted A/S with a short position of Excelerate Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orsted A/S and Excelerate Energy.
Diversification Opportunities for Orsted A/S and Excelerate Energy
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Orsted and Excelerate is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Orsted AS ADR and Excelerate Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelerate Energy and Orsted A/S 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 Orsted AS ADR are associated (or correlated) with Excelerate Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelerate Energy has no effect on the direction of Orsted A/S i.e., Orsted A/S and Excelerate Energy go up and down completely randomly.
Pair Corralation between Orsted A/S and Excelerate Energy
Assuming the 90 days horizon Orsted AS ADR is expected to under-perform the Excelerate Energy. But the pink sheet apears to be less risky and, when comparing its historical volatility, Orsted AS ADR is 1.0 times less risky than Excelerate Energy. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Excelerate Energy is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,831 in Excelerate Energy on August 31, 2024 and sell it today you would earn a total of 1,238 from holding Excelerate Energy or generate 67.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Orsted AS ADR vs. Excelerate Energy
Performance |
Timeline |
Orsted AS ADR |
Excelerate Energy |
Orsted A/S and Excelerate Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Orsted A/S and Excelerate Energy
The main advantage of trading using opposite Orsted A/S and Excelerate Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orsted A/S position performs unexpectedly, Excelerate 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 Excelerate Energy will offset losses from the drop in Excelerate Energy's long position.Orsted A/S vs. Brookfield Renewable Partners | Orsted A/S vs. Brookfield Renewable Corp | Orsted A/S vs. Clearway Energy Class | Orsted A/S vs. Atlantica Sustainable Infrastructure |
Excelerate Energy vs. Atlantica Sustainable Infrastructure | Excelerate Energy vs. Clearway Energy | Excelerate Energy vs. Brookfield Renewable Corp | Excelerate Energy vs. Nextera Energy Partners |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
CEOs Directory Screen CEOs from public companies around the world | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |