Correlation Between Cepton and Energous
Can any of the company-specific risk be diversified away by investing in both Cepton and Energous 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 Cepton and Energous into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cepton Inc and Energous, you can compare the effects of market volatilities on Cepton and Energous 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 Cepton with a short position of Energous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cepton and Energous.
Diversification Opportunities for Cepton and Energous
Excellent diversification
The 3 months correlation between Cepton and Energous is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cepton Inc and Energous in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energous and Cepton 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 Cepton Inc are associated (or correlated) with Energous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energous has no effect on the direction of Cepton i.e., Cepton and Energous go up and down completely randomly.
Pair Corralation between Cepton and Energous
Given the investment horizon of 90 days Cepton Inc is expected to generate 0.6 times more return on investment than Energous. However, Cepton Inc is 1.66 times less risky than Energous. It trades about 0.06 of its potential returns per unit of risk. Energous is currently generating about -0.16 per unit of risk. If you would invest 263.00 in Cepton Inc on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Cepton Inc or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cepton Inc vs. Energous
Performance |
| Timeline |
| Cepton Inc |
| Energous |
Cepton and Energous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cepton and Energous
The main advantage of trading using opposite Cepton and Energous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cepton position performs unexpectedly, Energous 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 Energous will offset losses from the drop in Energous' long position.The idea behind Cepton Inc and Energous pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Energous vs. Cepton Inc | Energous vs. SaverOne 2014 Ltd | Energous vs. Kraken Robotics | Energous vs. Focus Universal |
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.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |