Correlation Between Ameresco and Quanta Services

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

By analyzing existing cross correlation between Ameresco and Quanta Services, you can compare the effects of market volatilities on Ameresco and Quanta Services 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 Ameresco with a short position of Quanta Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ameresco and Quanta Services.

Diversification Opportunities for Ameresco and Quanta Services

0.9

Correlation Coefficient

Ameresco  Quanta Services

Almost no diversification

The 3 months correlation between Ameresco and Quanta is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ameresco and Quanta Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanta Services and Ameresco 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 Ameresco are associated (or correlated) with Quanta Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanta Services has no effect on the direction of Ameresco i.e., Ameresco and Quanta Services go up and down completely randomly.

Pair Corralation between Ameresco and Quanta Services

Given the investment horizon of 90 days Ameresco is expected to generate 2.75 times more return on investment than Quanta Services. However, Ameresco is 2.75 times more volatile than Quanta Services. It trades about 0.14 of its potential returns per unit of risk. Quanta Services is currently generating about 0.23 per unit of risk. If you would invest  1,163  in Ameresco on May 4, 2025 and sell it today you would earn a total of  424.00  from holding Ameresco or generate 36.46% return on investment over 90 days.

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

Ameresco  vs.  Quanta Services

Ameresco

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ameresco are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Ameresco exhibited solid returns over the last few months and may actually be approaching a breakup point.

Quanta Services

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Quanta Services are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Quanta Services reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ameresco and Quanta Services

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

The idea behind Ameresco and Quanta Services 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.