Correlation Between Alternus Energy and XPLR Infrastructure

Can any of the company-specific risk be diversified away by investing in both Alternus Energy and XPLR Infrastructure 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 Alternus Energy and XPLR Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alternus Energy Group and XPLR Infrastructure LP, you can compare the effects of market volatilities on Alternus Energy and XPLR Infrastructure 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 Alternus Energy with a short position of XPLR Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternus Energy and XPLR Infrastructure.

Diversification Opportunities for Alternus Energy and XPLR Infrastructure

0.28

Correlation Coefficient

Alternus Energy  XPLR Infrastructure

Modest diversification

The 3 months correlation between Alternus and XPLR is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Alternus Energy Group and XPLR Infrastructure LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XPLR Infrastructure and Alternus Energy 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 Alternus Energy Group are associated (or correlated) with XPLR Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XPLR Infrastructure has no effect on the direction of Alternus Energy i.e., Alternus Energy and XPLR Infrastructure go up and down completely randomly.

Pair Corralation between Alternus Energy and XPLR Infrastructure

Given the investment horizon of 90 days Alternus Energy Group is expected to under-perform the XPLR Infrastructure. In addition to that, Alternus Energy is 23.42 times more volatile than XPLR Infrastructure LP. It trades about -0.41 of its total potential returns per unit of risk. XPLR Infrastructure LP is currently generating about -0.15 per unit of volatility. If you would invest  950.00  in XPLR Infrastructure LP on September 13, 2025 and sell it today you would lose (50.00) from holding XPLR Infrastructure LP or give up 5.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	28.57%
Values	Daily Returns

Alternus Energy Group  vs.  XPLR Infrastructure LP

Alternus Energy Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Alternus Energy Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

XPLR Infrastructure

Risk-Adjusted Performance

Weakest

Over the last 90 days XPLR Infrastructure LP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Alternus Energy and XPLR Infrastructure

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

The idea behind Alternus Energy Group and XPLR Infrastructure LP 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.