Correlation Between Eestech and Fuel Tech
Can any of the company-specific risk be diversified away by investing in both Eestech and Fuel Tech 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 Eestech and Fuel Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eestech and Fuel Tech, you can compare the effects of market volatilities on Eestech and Fuel Tech 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 Eestech with a short position of Fuel Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eestech and Fuel Tech.
Diversification Opportunities for Eestech and Fuel Tech
Very good diversification
The 3 months correlation between Eestech and Fuel is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eestech and Fuel Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuel Tech and Eestech 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 Eestech are associated (or correlated) with Fuel Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuel Tech has no effect on the direction of Eestech i.e., Eestech and Fuel Tech go up and down completely randomly.
Pair Corralation between Eestech and Fuel Tech
If you would invest 103.00 in Fuel Tech on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Fuel Tech or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eestech vs. Fuel Tech
Performance |
| Timeline |
| Eestech |
| Fuel Tech |
Eestech and Fuel Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eestech and Fuel Tech
The main advantage of trading using opposite Eestech and Fuel Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eestech position performs unexpectedly, Fuel Tech 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 Fuel Tech will offset losses from the drop in Fuel Tech's long position.| Eestech vs. Seychelle Environmtl | Eestech vs. Energy and Water | Eestech vs. One World Universe | Eestech vs. Vow ASA |
| Fuel Tech vs. Federal Signal | Fuel Tech vs. CECO Environmental Corp | Fuel Tech vs. Zurn Elkay Water | Fuel Tech vs. Greenlane Renewables |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |