Correlation Between Alliant Energy and Gelteq Limited

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

By analyzing existing cross correlation between Alliant Energy Corp and Gelteq Limited Ordinary, you can compare the effects of market volatilities on Alliant Energy and Gelteq Limited 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 Alliant Energy with a short position of Gelteq Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliant Energy and Gelteq Limited.

Diversification Opportunities for Alliant Energy and Gelteq Limited

-0.78

Correlation Coefficient

Alliant Energy  Gelteq Limited

Pay attention - limited upside

The 3 months correlation between Alliant and Gelteq is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Alliant Energy Corp and Gelteq Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelteq Limited Ordinary and Alliant Energy 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 Alliant Energy Corp are associated (or correlated) with Gelteq Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelteq Limited Ordinary has no effect on the direction of Alliant Energy i.e., Alliant Energy and Gelteq Limited go up and down completely randomly.

Pair Corralation between Alliant Energy and Gelteq Limited

Considering the 90-day investment horizon Alliant Energy Corp is expected to generate 0.19 times more return on investment than Gelteq Limited. However, Alliant Energy Corp is 5.17 times less risky than Gelteq Limited. It trades about 0.11 of its potential returns per unit of risk. Gelteq Limited Ordinary is currently generating about -0.18 per unit of risk. If you would invest  5,882  in Alliant Energy Corp on December 28, 2024 and sell it today you would earn a total of  476.00  from holding Alliant Energy Corp or generate 8.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Alliant Energy Corp  vs.  Gelteq Limited Ordinary

Alliant Energy Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alliant Energy Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Alliant Energy may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Gelteq Limited Ordinary

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gelteq Limited Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Alliant Energy and Gelteq Limited

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

The idea behind Alliant Energy Corp and Gelteq Limited Ordinary 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 Commodity Directory module to find actively traded commodities issued by global exchanges.