Correlation Between Atlantic Power and Huaneng Power
Can any of the company-specific risk be diversified away by investing in both Atlantic Power and Huaneng Power 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 Power and Huaneng Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Power and Huaneng Power International, you can compare the effects of market volatilities on Atlantic Power and Huaneng Power 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 Power with a short position of Huaneng Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Power and Huaneng Power.
Diversification Opportunities for Atlantic Power and Huaneng Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlantic and Huaneng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Power and Huaneng Power International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaneng Power Intern and Atlantic Power 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 Power are associated (or correlated) with Huaneng Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaneng Power Intern has no effect on the direction of Atlantic Power i.e., Atlantic Power and Huaneng Power go up and down completely randomly.
Pair Corralation between Atlantic Power and Huaneng Power
If you would invest (100.00) in Huaneng Power International on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Huaneng Power International or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantic Power vs. Huaneng Power International
Performance |
| Timeline |
| Atlantic Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Huaneng Power Intern |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlantic Power and Huaneng Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Power and Huaneng Power
The main advantage of trading using opposite Atlantic Power and Huaneng Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Power position performs unexpectedly, Huaneng Power 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 Huaneng Power will offset losses from the drop in Huaneng Power's long position.| Atlantic Power vs. Old Republic International | Atlantic Power vs. WEC Energy Group | Atlantic Power vs. Presidio Property Trust | Atlantic Power vs. SEI Investments |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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