Correlation Between Advent Technologies and Tecogen

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

Diversification Opportunities for Advent Technologies and Tecogen

-0.47

Correlation Coefficient

Advent Technologies  Tecogen

Very good diversification

The 3 months correlation between Advent and Tecogen is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and Tecogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecogen 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 Tecogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecogen has no effect on the direction of Advent Technologies i.e., Advent Technologies and Tecogen go up and down completely randomly.

Pair Corralation between Advent Technologies and Tecogen

Considering the 90-day investment horizon Advent Technologies Holdings is expected to under-perform the Tecogen. But the stock apears to be less risky and, when comparing its historical volatility, Advent Technologies Holdings is 1.2 times less risky than Tecogen. The stock trades about -0.05 of its potential returns per unit of risk. The Tecogen is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  310.00  in Tecogen on May 3, 2025 and sell it today you would earn a total of  658.00  from holding Tecogen or generate 212.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Advent Technologies Holdings  vs.  Tecogen

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 abnormal performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Tecogen

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tecogen are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Tecogen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advent Technologies and Tecogen

The main advantage of trading using opposite Advent Technologies and Tecogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, Tecogen 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 Tecogen will offset losses from the drop in Tecogen's long position.

The idea behind Advent Technologies Holdings and Tecogen 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.