Correlation Between Advent Technologies and Advent Technologies

Can any of the company-specific risk be diversified away by investing in both Advent Technologies 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 Advent Technologies and Advent Technologies 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 Advent Technologies Holdings, you can compare the effects of market volatilities on Advent Technologies 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 Advent Technologies with a short position of Advent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and Advent Technologies.

Diversification Opportunities for Advent Technologies and Advent Technologies

0.72

Correlation Coefficient

Advent Technologies  Advent Technologies

Poor diversification

The 3 months correlation between Advent and Advent is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Advent Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Technologies 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 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 Advent Technologies i.e., Advent Technologies and Advent Technologies go up and down completely randomly.

Pair Corralation between Advent Technologies and Advent Technologies

Considering the 90-day investment horizon Advent Technologies Holdings is expected to under-perform the Advent Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Advent Technologies Holdings is 1.43 times less risky than Advent Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Advent Technologies Holdings is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  0.77  in Advent Technologies Holdings on April 17, 2025 and sell it today you would lose (0.29) from holding Advent Technologies Holdings or give up 37.66% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Advent Technologies Holdings  vs.  Advent Technologies Holdings

Advent Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advent Technologies Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Advent Technologies

Risk-Adjusted Performance

Weak

Over the last 90 days Advent Technologies Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Advent Technologies and Advent Technologies

The main advantage of trading using opposite Advent Technologies and Advent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies 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.

The idea behind Advent Technologies Holdings and Advent Technologies Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.