Correlation Between Energy Focu and Traeger
Can any of the company-specific risk be diversified away by investing in both Energy Focu and Traeger 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 Energy Focu and Traeger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Focu and Traeger, you can compare the effects of market volatilities on Energy Focu and Traeger 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 Energy Focu with a short position of Traeger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Focu and Traeger.
Diversification Opportunities for Energy Focu and Traeger
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Energy and Traeger is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Energy Focu and Traeger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traeger and Energy Focu 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 Energy Focu are associated (or correlated) with Traeger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traeger has no effect on the direction of Energy Focu i.e., Energy Focu and Traeger go up and down completely randomly.
Pair Corralation between Energy Focu and Traeger
Given the investment horizon of 90 days Energy Focu is expected to generate 1.72 times more return on investment than Traeger. However, Energy Focu is 1.72 times more volatile than Traeger. It trades about 0.17 of its potential returns per unit of risk. Traeger is currently generating about 0.06 per unit of risk. If you would invest 126.00 in Energy Focu on September 2, 2024 and sell it today you would earn a total of 23.00 from holding Energy Focu or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Focu vs. Traeger
Performance |
| Timeline |
| Energy Focu |
| Traeger |
Energy Focu and Traeger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Focu and Traeger
The main advantage of trading using opposite Energy Focu and Traeger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Focu position performs unexpectedly, Traeger 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 Traeger will offset losses from the drop in Traeger's long position.| Energy Focu vs. Petros Pharmaceuticals | Energy Focu vs. Pioneer Power Solutions | Energy Focu vs. Ensysce Biosciences |
| Traeger vs. Bassett Furniture Industries | Traeger vs. Ethan Allen Interiors | Traeger vs. Natuzzi SpA | Traeger vs. Flexsteel Industries |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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