Correlation Between Sidus Space and Advent Technologies

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

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

Diversification Opportunities for Sidus Space and Advent Technologies

-0.26

Correlation Coefficient

Sidus Space  Advent Technologies

Very good diversification

The 3 months correlation between Sidus and Advent is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sidus Space and Advent Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Technologies and Sidus Space 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 Sidus Space are associated (or correlated) with Advent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Technologies has no effect on the direction of Sidus Space i.e., Sidus Space and Advent Technologies go up and down completely randomly.

Pair Corralation between Sidus Space and Advent Technologies

Given the investment horizon of 90 days Sidus Space is expected to generate 0.99 times more return on investment than Advent Technologies. However, Sidus Space is 1.01 times less risky than Advent Technologies. It trades about -0.02 of its potential returns per unit of risk. Advent Technologies Holdings is currently generating about -0.08 per unit of risk. If you would invest  153.00  in Sidus Space on May 5, 2025 and sell it today you would lose (38.00) from holding Sidus Space or give up 24.84% of portfolio value over 90 days.

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

Sidus Space  vs.  Advent Technologies Holdings

Sidus Space

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sidus Space has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Advent Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advent Technologies Holdings 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 basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Sidus Space and Advent Technologies

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

The idea behind Sidus Space and Advent Technologies Holdings 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.