Correlation Between RE Royalties and Advent Technologies
Can any of the company-specific risk be diversified away by investing in both RE Royalties and Advent Technologies 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 RE Royalties and Advent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RE Royalties and Advent Technologies Holdings, you can compare the effects of market volatilities on RE Royalties and Advent Technologies 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 RE Royalties with a short position of Advent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of RE Royalties and Advent Technologies.
Diversification Opportunities for RE Royalties and Advent Technologies
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RROYF and Advent is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding RE Royalties and Advent Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Technologies and RE Royalties 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 RE Royalties are associated (or correlated) with Advent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Technologies has no effect on the direction of RE Royalties i.e., RE Royalties and Advent Technologies go up and down completely randomly.
Pair Corralation between RE Royalties and Advent Technologies
Assuming the 90 days horizon RE Royalties is expected to generate 0.43 times more return on investment than Advent Technologies. However, RE Royalties is 2.35 times less risky than Advent Technologies. It trades about -0.05 of its potential returns per unit of risk. Advent Technologies Holdings is currently generating about -0.21 per unit of risk. If you would invest 27.00 in RE Royalties on August 28, 2025 and sell it today you would lose (6.00) from holding RE Royalties or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RE Royalties vs. Advent Technologies Holdings
Performance |
| Timeline |
| RE Royalties |
| Advent Technologies |
RE Royalties and Advent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RE Royalties and Advent Technologies
The main advantage of trading using opposite RE Royalties and Advent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RE Royalties position performs unexpectedly, Advent Technologies 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 Advent Technologies will offset losses from the drop in Advent Technologies' long position.| RE Royalties vs. Mineral Mountain Mining | RE Royalties vs. Infinite Technology Corp | RE Royalties vs. Zhaojin Mining Industry | RE Royalties vs. Evolution Mining Limited |
| Advent Technologies vs. Neptune Insurance Holdings | Advent Technologies vs. Skyward Specialty Insurance | Advent Technologies vs. BE Semiconductor Industries | Advent Technologies vs. Tower Semiconductor |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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