Correlation Between Amprius Technologies and Eos Energy
Can any of the company-specific risk be diversified away by investing in both Amprius Technologies and Eos Energy 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 Amprius Technologies and Eos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amprius Technologies and Eos Energy Enterprises, you can compare the effects of market volatilities on Amprius Technologies and Eos Energy 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 Amprius Technologies with a short position of Eos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amprius Technologies and Eos Energy.
Diversification Opportunities for Amprius Technologies and Eos Energy
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amprius and Eos is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Amprius Technologies and Eos Energy Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eos Energy Enterprises and Amprius Technologies 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 Amprius Technologies are associated (or correlated) with Eos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eos Energy Enterprises has no effect on the direction of Amprius Technologies i.e., Amprius Technologies and Eos Energy go up and down completely randomly.
Pair Corralation between Amprius Technologies and Eos Energy
Given the investment horizon of 90 days Amprius Technologies is expected to generate 1.83 times more return on investment than Eos Energy. However, Amprius Technologies is 1.83 times more volatile than Eos Energy Enterprises. It trades about 0.18 of its potential returns per unit of risk. Eos Energy Enterprises is currently generating about -0.11 per unit of risk. If you would invest 139.00 in Amprius Technologies on August 27, 2024 and sell it today you would earn a total of 55.00 from holding Amprius Technologies or generate 39.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amprius Technologies vs. Eos Energy Enterprises
Performance |
| Timeline |
| Amprius Technologies |
| Eos Energy Enterprises |
Amprius Technologies and Eos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amprius Technologies and Eos Energy
The main advantage of trading using opposite Amprius Technologies and Eos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amprius Technologies position performs unexpectedly, Eos Energy 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 Eos Energy will offset losses from the drop in Eos Energy's long position.| Amprius Technologies vs. Eos Energy Enterprises | Amprius Technologies vs. FREYR Battery SA | Amprius Technologies vs. Microvast Holdings | Amprius Technologies vs. Chardan NexTech Acquisition |
| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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