Correlation Between Super Micro and Advent Technologies
Can any of the company-specific risk be diversified away by investing in both Super Micro 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 Super Micro and Advent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Micro Computer and Advent Technologies Holdings, you can compare the effects of market volatilities on Super Micro 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 Super Micro with a short position of Advent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Advent Technologies.
Diversification Opportunities for Super Micro and Advent Technologies
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Super and Advent is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer and Advent Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Technologies and Super Micro 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 Super Micro Computer 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 Super Micro i.e., Super Micro and Advent Technologies go up and down completely randomly.
Pair Corralation between Super Micro and Advent Technologies
Given the investment horizon of 90 days Super Micro Computer is expected to under-perform the Advent Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Super Micro Computer is 3.75 times less risky than Advent Technologies. The stock trades about 0.0 of its potential returns per unit of risk. The Advent Technologies Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.70 in Advent Technologies Holdings on June 7, 2025 and sell it today you would earn a total of 0.51 from holding Advent Technologies Holdings or generate 72.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Micro Computer vs. Advent Technologies Holdings
Performance |
| Timeline |
| Super Micro Computer |
| Advent Technologies |
Super Micro and Advent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Micro and Advent Technologies
The main advantage of trading using opposite Super Micro and Advent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Micro 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.| Super Micro vs. IONQ Inc | Super Micro vs. Arista Networks | Super Micro vs. Cricut Inc | Super Micro vs. D Wave Quantum |
| Advent Technologies vs. Advent Technologies Holdings | Advent Technologies vs. Brookfield Renewable Partners | Advent Technologies vs. Fusion Fuel Green | Advent Technologies vs. Fusion Fuel Green |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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