Correlation Between Atlantic Power and Algonquin Power
Can any of the company-specific risk be diversified away by investing in both Atlantic Power and Algonquin Power 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 Atlantic Power and Algonquin Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Power and Algonquin Power Utilities, you can compare the effects of market volatilities on Atlantic Power and Algonquin Power 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 Atlantic Power with a short position of Algonquin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Power and Algonquin Power.
Diversification Opportunities for Atlantic Power and Algonquin Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlantic and Algonquin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Power and Algonquin Power Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algonquin Power Utilities and Atlantic Power 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 Atlantic Power are associated (or correlated) with Algonquin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algonquin Power Utilities has no effect on the direction of Atlantic Power i.e., Atlantic Power and Algonquin Power go up and down completely randomly.
Pair Corralation between Atlantic Power and Algonquin Power
If you would invest 573.00 in Algonquin Power Utilities on January 24, 2024 and sell it today you would earn a total of 34.00 from holding Algonquin Power Utilities or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Atlantic Power vs. Algonquin Power Utilities
Performance |
| Timeline |
| Atlantic Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Algonquin Power Utilities |
Atlantic Power and Algonquin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Power and Algonquin Power
The main advantage of trading using opposite Atlantic Power and Algonquin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Power position performs unexpectedly, Algonquin Power 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 Algonquin Power will offset losses from the drop in Algonquin Power's long position.| Atlantic Power vs. ServiceNow | Atlantic Power vs. Fidus Investment Corp | Atlantic Power vs. Royal Bank of | Atlantic Power vs. Aegon NV ADR |
| Algonquin Power vs. Brookfield Renewable Corp | Algonquin Power vs. Nextera Energy Partners | Algonquin Power vs. Clearway Energy Class | Algonquin Power vs. Atlantica Sustainable Infrastructure |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |