Correlation Between Advent Technologies and Acuity Brands
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and Acuity Brands 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 Advent Technologies and Acuity Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Technologies Holdings and Acuity Brands, you can compare the effects of market volatilities on Advent Technologies and Acuity Brands 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 Advent Technologies with a short position of Acuity Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Acuity Brands.
Diversification Opportunities for Advent Technologies and Acuity Brands
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advent and Acuity is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Acuity Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acuity Brands and Advent Technologies 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 Advent Technologies Holdings are associated (or correlated) with Acuity Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acuity Brands has no effect on the direction of Advent Technologies i.e., Advent Technologies and Acuity Brands go up and down completely randomly.
Pair Corralation between Advent Technologies and Acuity Brands
Considering the 90-day investment horizon Advent Technologies Holdings is expected to generate 6.07 times more return on investment than Acuity Brands. However, Advent Technologies is 6.07 times more volatile than Acuity Brands. It trades about 0.07 of its potential returns per unit of risk. Acuity Brands is currently generating about 0.21 per unit of risk. If you would invest 275.00 in Advent Technologies Holdings on June 11, 2025 and sell it today you would earn a total of 49.00 from holding Advent Technologies Holdings or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Technologies Holdings vs. Acuity Brands
Performance |
| Timeline |
| Advent Technologies |
| Acuity Brands |
Advent Technologies and Acuity Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Technologies and Acuity Brands
The main advantage of trading using opposite Advent Technologies and Acuity Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Acuity Brands 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 Acuity Brands will offset losses from the drop in Acuity Brands' long position.| Advent Technologies vs. Advent Technologies Holdings | Advent Technologies vs. AgriFORCE Growing Systems | Advent Technologies vs. Azure Power Global | Advent Technologies vs. Ensysce Biosciences |
| Acuity Brands vs. Advanced Energy Industries | Acuity Brands vs. Kimball Electronics | Acuity Brands vs. Hubbell | Acuity Brands vs. nVent Electric PLC |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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