Correlation Between Heliogen and Advent Technologies

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

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

Diversification Opportunities for Heliogen and Advent Technologies

0.0

Correlation Coefficient

Heliogen  Advent Technologies

Pay attention - limited upside

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

Pair Corralation between Heliogen and Advent Technologies

If you would invest  529.00  in Advent Technologies Holdings on December 29, 2024 and sell it today you would lose (48.00) from holding Advent Technologies Holdings or give up 9.07% of portfolio value over 90 days.

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

Heliogen  vs.  Advent Technologies Holdings

Heliogen

Risk-Adjusted Performance

Very Weak

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

Advent Technologies

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Heliogen and Advent Technologies

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

The idea behind Heliogen and Advent Technologies Holdings 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.