Correlation Between Advent Technologies and Hubbell
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and Hubbell 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 Hubbell 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 Hubbell, you can compare the effects of market volatilities on Advent Technologies and Hubbell 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 Hubbell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Hubbell.
Diversification Opportunities for Advent Technologies and Hubbell
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Hubbell is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Hubbell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubbell 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 Hubbell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubbell has no effect on the direction of Advent Technologies i.e., Advent Technologies and Hubbell go up and down completely randomly.
Pair Corralation between Advent Technologies and Hubbell
Considering the 90-day investment horizon Advent Technologies Holdings is expected to generate 4.78 times more return on investment than Hubbell. However, Advent Technologies is 4.78 times more volatile than Hubbell. It trades about 0.04 of its potential returns per unit of risk. Hubbell is currently generating about 0.02 per unit of risk. If you would invest 281.00 in Advent Technologies Holdings on March 22, 2025 and sell it today you would lose (61.00) from holding Advent Technologies Holdings or give up 21.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Technologies Holdings vs. Hubbell
Performance |
| Timeline |
| Advent Technologies |
| Hubbell |
Advent Technologies and Hubbell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Technologies and Hubbell
The main advantage of trading using opposite Advent Technologies and Hubbell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Hubbell 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 Hubbell will offset losses from the drop in Hubbell's long position.| Advent Technologies vs. Fusion Fuel Green | Advent Technologies vs. Fluence Energy | Advent Technologies vs. Energy Vault Holdings | Advent Technologies vs. Enlight Renewable Energy |
| Hubbell vs. Advanced Energy Industries | Hubbell vs. Enersys | Hubbell vs. Acuity Brands | Hubbell vs. Kimball Electronics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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