Correlation Between Fusion Fuel and Alternus Energy
Can any of the company-specific risk be diversified away by investing in both Fusion Fuel and Alternus 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 Fusion Fuel and Alternus Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusion Fuel Green and Alternus Energy Group, you can compare the effects of market volatilities on Fusion Fuel and Alternus 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 Fusion Fuel with a short position of Alternus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusion Fuel and Alternus Energy.
Diversification Opportunities for Fusion Fuel and Alternus Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fusion and Alternus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Fuel Green and Alternus Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternus Energy Group and Fusion Fuel 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 Fusion Fuel Green are associated (or correlated) with Alternus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternus Energy Group has no effect on the direction of Fusion Fuel i.e., Fusion Fuel and Alternus Energy go up and down completely randomly.
Pair Corralation between Fusion Fuel and Alternus Energy
Given the investment horizon of 90 days Fusion Fuel Green is expected to generate 2.99 times more return on investment than Alternus Energy. However, Fusion Fuel is 2.99 times more volatile than Alternus Energy Group. It trades about 0.01 of its potential returns per unit of risk. Alternus Energy Group is currently generating about -0.02 per unit of risk. If you would invest 115.00 in Fusion Fuel Green on October 2, 2024 and sell it today you would lose (59.00) from holding Fusion Fuel Green or give up 51.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fusion Fuel Green vs. Alternus Energy Group
Performance |
Timeline |
Fusion Fuel Green |
Alternus Energy Group |
Fusion Fuel and Alternus Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fusion Fuel and Alternus Energy
The main advantage of trading using opposite Fusion Fuel and Alternus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusion Fuel position performs unexpectedly, Alternus 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 Alternus Energy will offset losses from the drop in Alternus Energy's long position.Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Fluence Energy | Fusion Fuel vs. Enlight Renewable Energy | Fusion Fuel vs. Renew Energy Global |
Alternus Energy vs. GAMCO Global Gold | Alternus Energy vs. Agnico Eagle Mines | Alternus Energy vs. Waste Management | Alternus Energy vs. Century Aluminum |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |