Correlation Analysis Between Fuel Tech and Energy Recovery

This module allows you to analyze existing cross correlation between Fuel Tech and Energy Recovery. You can compare the effects of market volatilities on Fuel Tech and Energy Recovery 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 Fuel Tech with a short position of Energy Recovery. See also your portfolio center. Please also check ongoing floating volatility patterns of Fuel Tech and Energy Recovery.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Fuel Tech  
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Risk-Adjusted Performance

Over the last 30 days Fuel Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly consistent which may send shares a bit higher in October 2019. The prevailing confusion may also be a sign of long-lasting up-swing for the organization traders.
Energy Recovery  
00

Risk-Adjusted Performance

Over the last 30 days Energy Recovery has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Energy Recovery is not utilizing all of its potentials. The late stock price disturbance, may contribute to mid-run losses for the stockholder.

Fuel Tech and Energy Recovery Volatility Contrast

 Predicted Return Density 
      Returns 

Fuel Tech Inc  vs.  Energy Recovery Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Fuel Tech is expected to under-perform the Energy Recovery. In addition to that, Fuel Tech is 1.16 times more volatile than Energy Recovery. It trades about -0.12 of its total potential returns per unit of risk. Energy Recovery is currently generating about 0.0 per unit of volatility. If you would invest  993.00  in Energy Recovery on August 22, 2019 and sell it today you would lose (26.00)  from holding Energy Recovery or give up 2.62% of portfolio value over 30 days.

Pair Corralation between Fuel Tech and Energy Recovery

0.61
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Fuel Tech and Energy Recovery

Fuel Tech Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Fuel Tech Inc and Energy Recovery Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Energy Recovery and Fuel Tech 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 Fuel Tech are associated (or correlated) with Energy Recovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Recovery has no effect on the direction of Fuel Tech i.e. Fuel Tech and Energy Recovery go up and down completely randomly.
See also your portfolio center. Please also try Idea Breakdown module to analyze constituents of all macroaxis ideas. macroaxis investment ideas are predefined, sector-focused investing themes.


 
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