Correlation Between Traeger and Energy Focu
Can any of the company-specific risk be diversified away by investing in both Traeger and Energy Focu 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 Traeger and Energy Focu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Traeger and Energy Focu, you can compare the effects of market volatilities on Traeger and Energy Focu 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 Traeger with a short position of Energy Focu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traeger and Energy Focu.
Diversification Opportunities for Traeger and Energy Focu
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Traeger and Energy is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Traeger and Energy Focu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Focu and Traeger 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 Traeger are associated (or correlated) with Energy Focu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Focu has no effect on the direction of Traeger i.e., Traeger and Energy Focu go up and down completely randomly.
Pair Corralation between Traeger and Energy Focu
Given the investment horizon of 90 days Traeger is expected to under-perform the Energy Focu. But the stock apears to be less risky and, when comparing its historical volatility, Traeger is 11.35 times less risky than Energy Focu. The stock trades about -0.2 of its potential returns per unit of risk. The Energy Focu is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 137.00 in Energy Focu on November 29, 2024 and sell it today you would earn a total of 73.00 from holding Energy Focu or generate 53.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Traeger vs. Energy Focu
Performance |
| Timeline |
| Traeger |
| Energy Focu |
Traeger and Energy Focu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Traeger and Energy Focu
The main advantage of trading using opposite Traeger and Energy Focu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traeger position performs unexpectedly, Energy Focu 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 Energy Focu will offset losses from the drop in Energy Focu's long position.| Traeger vs. Sleep Number Corp | Traeger vs. The Lovesac | Traeger vs. MillerKnoll | Traeger vs. Bassett Furniture Industries |
| Energy Focu vs. Petros Pharmaceuticals | Energy Focu vs. Pioneer Power Solutions | Energy Focu vs. Ensysce Biosciences |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |