Correlation Between Avant Technologies and Ballard Power

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

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

Diversification Opportunities for Avant Technologies and Ballard Power

-0.25

Correlation Coefficient

Avant Technologies  Ballard Power

Very good diversification

The 3 months correlation between Avant and Ballard is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Avant Technologies and Ballard Power Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballard Power Systems and Avant 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 Avant Technologies are associated (or correlated) with Ballard Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballard Power Systems has no effect on the direction of Avant Technologies i.e., Avant Technologies and Ballard Power go up and down completely randomly.

Pair Corralation between Avant Technologies and Ballard Power

Given the investment horizon of 90 days Avant Technologies is expected to under-perform the Ballard Power. In addition to that, Avant Technologies is 1.23 times more volatile than Ballard Power Systems. It trades about -0.02 of its total potential returns per unit of risk. Ballard Power Systems is currently generating about 0.12 per unit of volatility. If you would invest  142.00  in Ballard Power Systems on May 16, 2025 and sell it today you would earn a total of  45.00  from holding Ballard Power Systems or generate 31.69% return on investment over 90 days.

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

Avant Technologies  vs.  Ballard Power Systems

Avant Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Avant Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Ballard Power Systems

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ballard Power Systems are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady fundamental indicators, Ballard Power reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Avant Technologies and Ballard Power

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

The idea behind Avant Technologies and Ballard Power Systems 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.

Check out your portfolio center.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.