Correlation Between Goodtech and Atea ASA
Can any of the company-specific risk be diversified away by investing in both Goodtech and Atea ASA 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 Goodtech and Atea ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodtech and Atea ASA, you can compare the effects of market volatilities on Goodtech and Atea ASA 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 Goodtech with a short position of Atea ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodtech and Atea ASA.
Diversification Opportunities for Goodtech and Atea ASA
Poor diversification
The 3 months correlation between Goodtech and Atea is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Goodtech and Atea ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atea ASA and Goodtech 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 Goodtech are associated (or correlated) with Atea ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atea ASA has no effect on the direction of Goodtech i.e., Goodtech and Atea ASA go up and down completely randomly.
Pair Corralation between Goodtech and Atea ASA
Assuming the 90 days trading horizon Goodtech is expected to generate 1.87 times more return on investment than Atea ASA. However, Goodtech is 1.87 times more volatile than Atea ASA. It trades about 0.13 of its potential returns per unit of risk. Atea ASA is currently generating about 0.14 per unit of risk. If you would invest 898.00 in Goodtech on October 5, 2025 and sell it today you would earn a total of 152.00 from holding Goodtech or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodtech vs. Atea ASA
Performance |
| Timeline |
| Goodtech |
| Atea ASA |
Goodtech and Atea ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodtech and Atea ASA
The main advantage of trading using opposite Goodtech and Atea ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodtech position performs unexpectedly, Atea ASA 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 Atea ASA will offset losses from the drop in Atea ASA's long position.| Goodtech vs. HydrogenPro AS | Goodtech vs. Eqva ASA | Goodtech vs. Havila Shipping ASA | Goodtech vs. Golden Energy Offshore |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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