Correlation Between Algonquin Power and Turtle Beach
Can any of the company-specific risk be diversified away by investing in both Algonquin Power and Turtle Beach 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 Algonquin Power and Turtle Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Algonquin Power Utilities and Turtle Beach, you can compare the effects of market volatilities on Algonquin Power and Turtle Beach 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 Algonquin Power with a short position of Turtle Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algonquin Power and Turtle Beach.
Diversification Opportunities for Algonquin Power and Turtle Beach
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Algonquin and Turtle is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Algonquin Power Utilities and Turtle Beach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turtle Beach and Algonquin 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 Algonquin Power Utilities are associated (or correlated) with Turtle Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turtle Beach has no effect on the direction of Algonquin Power i.e., Algonquin Power and Turtle Beach go up and down completely randomly.
Pair Corralation between Algonquin Power and Turtle Beach
Considering the 90-day investment horizon Algonquin Power Utilities is expected to under-perform the Turtle Beach. But the stock apears to be less risky and, when comparing its historical volatility, Algonquin Power Utilities is 2.53 times less risky than Turtle Beach. The stock trades about -0.01 of its potential returns per unit of risk. The Turtle Beach is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,343 in Turtle Beach on June 9, 2025 and sell it today you would earn a total of 198.00 from holding Turtle Beach or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Algonquin Power Utilities vs. Turtle Beach
Performance |
| Timeline |
| Algonquin Power Utilities |
| Turtle Beach |
Algonquin Power and Turtle Beach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Algonquin Power and Turtle Beach
The main advantage of trading using opposite Algonquin Power and Turtle Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algonquin Power position performs unexpectedly, Turtle Beach 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 Turtle Beach will offset losses from the drop in Turtle Beach's long position.| Algonquin Power vs. Brookfield Renewable Partners | Algonquin Power vs. Brookfield Renewable Corp | Algonquin Power vs. Renew Energy Global | Algonquin Power vs. Fortis Inc |
| Turtle Beach vs. Tantech Holdings | Turtle Beach vs. BorgWarner | Turtle Beach vs. United Guardian | Turtle Beach vs. Gentex |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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