Correlation Between Energy Focu and IPower
Can any of the company-specific risk be diversified away by investing in both Energy Focu and IPower 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 IPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Focu and iPower Inc, you can compare the effects of market volatilities on Energy Focu and IPower 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 IPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Focu and IPower.
Diversification Opportunities for Energy Focu and IPower
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Energy and IPower is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Energy Focu and iPower Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPower Inc 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 IPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPower Inc has no effect on the direction of Energy Focu i.e., Energy Focu and IPower go up and down completely randomly.
Pair Corralation between Energy Focu and IPower
Given the investment horizon of 90 days Energy Focu is expected to under-perform the IPower. But the stock apears to be less risky and, when comparing its historical volatility, Energy Focu is 1.57 times less risky than IPower. The stock trades about -0.01 of its potential returns per unit of risk. The iPower Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 84.00 in iPower Inc on August 27, 2024 and sell it today you would lose (14.00) from holding iPower Inc or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Focu vs. iPower Inc
Performance |
| Timeline |
| Energy Focu |
| iPower Inc |
Energy Focu and IPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Focu and IPower
The main advantage of trading using opposite Energy Focu and IPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Focu position performs unexpectedly, IPower 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 IPower will offset losses from the drop in IPower's long position.| Energy Focu vs. Petros Pharmaceuticals | Energy Focu vs. Pioneer Power Solutions | Energy Focu vs. Ensysce Biosciences |
| IPower vs. Hour Loop | IPower vs. Qurate Retail Series | IPower vs. MOGU Inc | IPower vs. Meiwu Technology Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |