Correlation Between Ellomay Capital and DTE Energy
Can any of the company-specific risk be diversified away by investing in both Ellomay Capital and DTE Energy 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 Ellomay Capital and DTE Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellomay Capital and DTE Energy Co, you can compare the effects of market volatilities on Ellomay Capital and DTE Energy 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 Ellomay Capital with a short position of DTE Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellomay Capital and DTE Energy.
Diversification Opportunities for Ellomay Capital and DTE Energy
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ellomay and DTE is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ellomay Capital and DTE Energy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTE Energy and Ellomay Capital 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 Ellomay Capital are associated (or correlated) with DTE Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTE Energy has no effect on the direction of Ellomay Capital i.e., Ellomay Capital and DTE Energy go up and down completely randomly.
Pair Corralation between Ellomay Capital and DTE Energy
Given the investment horizon of 90 days Ellomay Capital is expected to generate 3.98 times more return on investment than DTE Energy. However, Ellomay Capital is 3.98 times more volatile than DTE Energy Co. It trades about 0.04 of its potential returns per unit of risk. DTE Energy Co is currently generating about 0.06 per unit of risk. If you would invest 1,507 in Ellomay Capital on August 24, 2024 and sell it today you would earn a total of 153.00 from holding Ellomay Capital or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.6% |
| Values | Daily Returns |
Ellomay Capital vs. DTE Energy Co
Performance |
| Timeline |
| Ellomay Capital |
| DTE Energy |
Ellomay Capital and DTE Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellomay Capital and DTE Energy
The main advantage of trading using opposite Ellomay Capital and DTE Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellomay Capital position performs unexpectedly, DTE Energy 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 DTE Energy will offset losses from the drop in DTE Energy's long position.| Ellomay Capital vs. Enlight Renewable Energy | Ellomay Capital vs. Renew Energy Global | Ellomay Capital vs. Clearway Energy Class | Ellomay Capital vs. Excelerate Energy |
| DTE Energy vs. Southern Co | DTE Energy vs. Duke Energy Corp | DTE Energy vs. Georgia Power Co | DTE Energy vs. Entergy Arkansas LLC |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |