Correlation Between Excelerate Energy and Ellomay Capital
Can any of the company-specific risk be diversified away by investing in both Excelerate Energy and Ellomay Capital 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 Excelerate Energy and Ellomay Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelerate Energy and Ellomay Capital, you can compare the effects of market volatilities on Excelerate Energy and Ellomay Capital 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 Excelerate Energy with a short position of Ellomay Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelerate Energy and Ellomay Capital.
Diversification Opportunities for Excelerate Energy and Ellomay Capital
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Excelerate and Ellomay is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Excelerate Energy and Ellomay Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellomay Capital and Excelerate 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 Excelerate Energy are associated (or correlated) with Ellomay Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellomay Capital has no effect on the direction of Excelerate Energy i.e., Excelerate Energy and Ellomay Capital go up and down completely randomly.
Pair Corralation between Excelerate Energy and Ellomay Capital
Allowing for the 90-day total investment horizon Excelerate Energy is expected to generate 1.15 times more return on investment than Ellomay Capital. However, Excelerate Energy is 1.15 times more volatile than Ellomay Capital. It trades about 0.15 of its potential returns per unit of risk. Ellomay Capital is currently generating about 0.11 per unit of risk. If you would invest 2,423 in Excelerate Energy on November 1, 2024 and sell it today you would earn a total of 672.00 from holding Excelerate Energy or generate 27.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelerate Energy vs. Ellomay Capital
Performance |
| Timeline |
| Excelerate Energy |
| Ellomay Capital |
Excelerate Energy and Ellomay Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelerate Energy and Ellomay Capital
The main advantage of trading using opposite Excelerate Energy and Ellomay Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelerate Energy position performs unexpectedly, Ellomay Capital 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 Ellomay Capital will offset losses from the drop in Ellomay Capital's long position.| Excelerate Energy vs. Clearway Energy | Excelerate Energy vs. Brookfield Renewable Corp | Excelerate Energy vs. Nextera Energy Partners | Excelerate Energy vs. Brookfield Renewable Partners |
| Ellomay Capital vs. Enlight Renewable Energy | Ellomay Capital vs. Renew Energy Global | Ellomay Capital vs. Clearway Energy Class | Ellomay Capital vs. Excelerate Energy |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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