Correlation Between Powertap Hydrogen and Innergex Renewable

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

By analyzing existing cross correlation between Powertap Hydrogen Capital and Innergex Renewable Energy, you can compare the effects of market volatilities on Powertap Hydrogen and Innergex Renewable 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 Powertap Hydrogen with a short position of Innergex Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powertap Hydrogen and Innergex Renewable.

Diversification Opportunities for Powertap Hydrogen and Innergex Renewable

0.0

Correlation Coefficient

Powertap Hydrogen  Innergex Renewable

Pay attention - limited upside

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

Pair Corralation between Powertap Hydrogen and Innergex Renewable

If you would invest  650.00  in Innergex Renewable Energy on September 3, 2024 and sell it today you would lose (31.00) from holding Innergex Renewable Energy or give up 4.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Powertap Hydrogen Capital  vs.  Innergex Renewable Energy

Powertap Hydrogen Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Powertap Hydrogen Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Powertap Hydrogen is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Innergex Renewable Energy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Innergex Renewable Energy has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Innergex Renewable is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Powertap Hydrogen and Innergex Renewable

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

The idea behind Powertap Hydrogen Capital and Innergex Renewable Energy 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.