Alternative Energy Correlations

AEGY Stock  USD 0.0001  0.00  0.00%   
The correlation of Alternative Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
  
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alternative Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price.
For more information on how to buy Alternative Stock please use our How to Invest in Alternative Energy guide.

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
ALBBYALBHF
HITIWBA
LFLYALBBY
WBAALST
LFLYALST
LFLYALBHF
  
High negative correlations   
HITILFLY
ALSTALBHF
ALBBYALST
HITIALBBY
LFLYWBA
WBAALBHF

Risk-Adjusted Indicators

There is a big difference between Alternative Stock performing well and Alternative Energy Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Alternative Energy's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.