Correlation Between Quanta Services and Ameresco

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

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

Diversification Opportunities for Quanta Services and Ameresco

0.9

Correlation Coefficient

Quanta Services  Ameresco

Almost no diversification

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

Pair Corralation between Quanta Services and Ameresco

Considering the 90-day investment horizon Quanta Services is expected to generate 1.72 times less return on investment than Ameresco. But when comparing it to its historical volatility, Quanta Services is 2.75 times less risky than Ameresco. It trades about 0.23 of its potential returns per unit of risk. Ameresco is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,163  in Ameresco on May 5, 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

Quanta Services  vs.  Ameresco

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.

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.

Pair Trading with Quanta Services and Ameresco

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

The idea behind Quanta Services and Ameresco 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.