Correlation Between Ellomay Capital and Enlight Renewable
Can any of the company-specific risk be diversified away by investing in both Ellomay Capital and Enlight Renewable 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 Enlight Renewable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellomay Capital and Enlight Renewable Energy, you can compare the effects of market volatilities on Ellomay Capital and Enlight Renewable 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 Enlight Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellomay Capital and Enlight Renewable.
Diversification Opportunities for Ellomay Capital and Enlight Renewable
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ellomay and Enlight is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ellomay Capital and Enlight Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlight Renewable 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 Enlight Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlight Renewable Energy has no effect on the direction of Ellomay Capital i.e., Ellomay Capital and Enlight Renewable go up and down completely randomly.
Pair Corralation between Ellomay Capital and Enlight Renewable
Given the investment horizon of 90 days Ellomay Capital is expected to generate 1.23 times more return on investment than Enlight Renewable. However, Ellomay Capital is 1.23 times more volatile than Enlight Renewable Energy. It trades about 0.24 of its potential returns per unit of risk. Enlight Renewable Energy is currently generating about 0.03 per unit of risk. If you would invest 1,201 in Ellomay Capital on August 28, 2024 and sell it today you would earn a total of 448.00 from holding Ellomay Capital or generate 37.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ellomay Capital vs. Enlight Renewable Energy
Performance |
| Timeline |
| Ellomay Capital |
| Enlight Renewable Energy |
Ellomay Capital and Enlight Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellomay Capital and Enlight Renewable
The main advantage of trading using opposite Ellomay Capital and Enlight Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellomay Capital position performs unexpectedly, Enlight Renewable 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 Enlight Renewable will offset losses from the drop in Enlight Renewable'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 |
| Enlight Renewable vs. Atlantica Sustainable Infrastructure | Enlight Renewable vs. Verde Clean Fuels | Enlight Renewable vs. ReNew Energy Global | Enlight Renewable vs. Ellomay Capital |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |