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

Assuming the 90 days horizon Advent Technologies Holdings is expected to generate 1.16 times more return on investment than Advent Technologies. However, Advent Technologies is 1.16 times more volatile than Advent Technologies Holdings. It trades about 0.03 of its potential returns per unit of risk. Advent Technologies Holdings is currently generating about 0.02 per unit of risk. If you would invest  1.04  in Advent Technologies Holdings on May 1, 2025 and sell it today you would lose (0.48) from holding Advent Technologies Holdings or give up 46.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.65%
Values	Daily Returns

Advent Technologies Holdings  vs.  Advent Technologies Holdings

Advent Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Technologies Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Advent Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Advent Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Advent Technologies Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal fundamental indicators, Advent Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.