Correlation Between Project Energy and Atlantic Energy

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

By analyzing existing cross correlation between Project Energy Reimagined and Atlantic Energy Solutions, you can compare the effects of market volatilities on Project Energy and Atlantic 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 Project Energy with a short position of Atlantic Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Project Energy and Atlantic Energy.

Diversification Opportunities for Project Energy and Atlantic Energy

0.0

Correlation Coefficient

Project Energy  Atlantic Energy

Pay attention - limited upside

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

Pair Corralation between Project Energy and Atlantic Energy

If you would invest  1.80  in Atlantic Energy Solutions on October 9, 2024 and sell it today you would lose (1.03) from holding Atlantic Energy Solutions or give up 57.22% of portfolio value over 90 days.

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

Project Energy Reimagined  vs.  Atlantic Energy Solutions

Project Energy Reimagined

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Project Energy Reimagined has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Project Energy is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Atlantic Energy Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Project Energy and Atlantic Energy

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

The idea behind Project Energy Reimagined and Atlantic Energy Solutions 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.