Correlation Between Excelerate Energy and Boralex
Can any of the company-specific risk be diversified away by investing in both Excelerate Energy and Boralex 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 Excelerate Energy and Boralex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelerate Energy and Boralex, you can compare the effects of market volatilities on Excelerate Energy and Boralex 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 Excelerate Energy with a short position of Boralex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelerate Energy and Boralex.
Diversification Opportunities for Excelerate Energy and Boralex
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Excelerate and Boralex is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Excelerate Energy and Boralex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boralex and Excelerate Energy 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 Excelerate Energy are associated (or correlated) with Boralex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boralex has no effect on the direction of Excelerate Energy i.e., Excelerate Energy and Boralex go up and down completely randomly.
Pair Corralation between Excelerate Energy and Boralex
Allowing for the 90-day total investment horizon Excelerate Energy is expected to generate 0.88 times more return on investment than Boralex. However, Excelerate Energy is 1.13 times less risky than Boralex. It trades about 0.03 of its potential returns per unit of risk. Boralex is currently generating about -0.01 per unit of risk. If you would invest 2,546 in Excelerate Energy on September 12, 2024 and sell it today you would earn a total of 538.00 from holding Excelerate Energy or generate 21.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 77.58% |
Values | Daily Returns |
Excelerate Energy vs. Boralex
Performance |
Timeline |
Excelerate Energy |
Boralex |
Excelerate Energy and Boralex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Excelerate Energy and Boralex
The main advantage of trading using opposite Excelerate Energy and Boralex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelerate Energy position performs unexpectedly, Boralex 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 Boralex will offset losses from the drop in Boralex's long position.Excelerate Energy vs. Atlantica Sustainable Infrastructure | Excelerate Energy vs. Clearway Energy | Excelerate Energy vs. Brookfield Renewable Corp | Excelerate Energy vs. Nextera Energy Partners |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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