Correlation Between Advent Technologies and NRG Energy
Can any of the company-specific risk be diversified away by investing in both Advent Technologies and NRG 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 Advent Technologies and NRG Energy 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 NRG Energy, you can compare the effects of market volatilities on Advent Technologies and NRG 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 Advent Technologies with a short position of NRG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and NRG Energy.
Diversification Opportunities for Advent Technologies and NRG Energy
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Advent and NRG is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and NRG Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRG Energy 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 NRG Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRG Energy has no effect on the direction of Advent Technologies i.e., Advent Technologies and NRG Energy go up and down completely randomly.
Pair Corralation between Advent Technologies and NRG Energy
Considering the 90-day investment horizon Advent Technologies Holdings is expected to under-perform the NRG Energy. In addition to that, Advent Technologies is 4.79 times more volatile than NRG Energy. It trades about -0.19 of its total potential returns per unit of risk. NRG Energy is currently generating about 0.11 per unit of volatility. If you would invest 14,519 in NRG Energy on August 29, 2025 and sell it today you would earn a total of 2,335 from holding NRG Energy or generate 16.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Technologies Holdings vs. NRG Energy
Performance |
| Timeline |
| Advent Technologies |
| NRG Energy |
Advent Technologies and NRG Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Technologies and NRG Energy
The main advantage of trading using opposite Advent Technologies and NRG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, NRG 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 NRG Energy will offset losses from the drop in NRG Energy's long position.| Advent Technologies vs. Kossan Rubber Industries | Advent Technologies vs. FDG Electric Vehicles | Advent Technologies vs. Applied Materials | Advent Technologies vs. Geely Automobile Holdings |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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