Correlation Between Atlantic Wind and Smart Powerr

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

By analyzing existing cross correlation between Atlantic Wind Solar and Smart Powerr Corp, you can compare the effects of market volatilities on Atlantic Wind and Smart Powerr 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 Atlantic Wind with a short position of Smart Powerr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Wind and Smart Powerr.

Diversification Opportunities for Atlantic Wind and Smart Powerr

0.29

Correlation Coefficient

Atlantic Wind  Smart Powerr

Modest diversification

The 3 months correlation between Atlantic and Smart is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Wind Solar and Smart Powerr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Powerr Corp and Atlantic Wind 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 Atlantic Wind Solar are associated (or correlated) with Smart Powerr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Powerr Corp has no effect on the direction of Atlantic Wind i.e., Atlantic Wind and Smart Powerr go up and down completely randomly.

Pair Corralation between Atlantic Wind and Smart Powerr

Given the investment horizon of 90 days Atlantic Wind Solar is expected to under-perform the Smart Powerr. In addition to that, Atlantic Wind is 1.67 times more volatile than Smart Powerr Corp. It trades about -0.03 of its total potential returns per unit of risk. Smart Powerr Corp is currently generating about 0.01 per unit of volatility. If you would invest  145.00  in Smart Powerr Corp on August 24, 2025 and sell it today you would lose (15.00) from holding Smart Powerr Corp or give up 10.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.97%
Values	Daily Returns

Atlantic Wind Solar  vs.  Smart Powerr Corp

Atlantic Wind Solar

Risk-Adjusted Performance

Weakest

Over the last 90 days Atlantic Wind Solar has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Smart Powerr Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Smart Powerr Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Smart Powerr is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Atlantic Wind and Smart Powerr

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

The idea behind Atlantic Wind Solar and Smart Powerr Corp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.