Correlation Between NRG Energy and Atlantic Power
Can any of the company-specific risk be diversified away by investing in both NRG Energy and Atlantic 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 NRG Energy and Atlantic Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRG Energy and Atlantic Power, you can compare the effects of market volatilities on NRG Energy and Atlantic 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 NRG Energy with a short position of Atlantic Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRG Energy and Atlantic Power.
Diversification Opportunities for NRG Energy and Atlantic Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NRG and Atlantic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NRG Energy and Atlantic Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Power and NRG 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 NRG Energy are associated (or correlated) with Atlantic Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Power has no effect on the direction of NRG Energy i.e., NRG Energy and Atlantic Power go up and down completely randomly.
Pair Corralation between NRG Energy and Atlantic Power
If you would invest 3,158 in NRG Energy on January 24, 2024 and sell it today you would earn a total of 3,991 from holding NRG Energy or generate 126.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NRG Energy vs. Atlantic Power
Performance |
| Timeline |
| NRG Energy |
| Atlantic Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NRG Energy and Atlantic Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRG Energy and Atlantic Power
The main advantage of trading using opposite NRG Energy and Atlantic Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRG Energy position performs unexpectedly, Atlantic 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 Atlantic Power will offset losses from the drop in Atlantic Power's long position.| NRG Energy vs. Pampa Energia SA | NRG Energy vs. AGL Energy | NRG Energy vs. Power Assets Holdings | NRG Energy vs. Maxim Power Corp |
| Atlantic Power vs. ServiceNow | Atlantic Power vs. Fidus Investment Corp | Atlantic Power vs. Royal Bank of | Atlantic Power vs. Aegon NV ADR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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