Correlation Between Ellomay Capital and Heliogen
Can any of the company-specific risk be diversified away by investing in both Ellomay Capital and Heliogen 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 Heliogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellomay Capital and Heliogen, you can compare the effects of market volatilities on Ellomay Capital and Heliogen 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 Heliogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellomay Capital and Heliogen.
Diversification Opportunities for Ellomay Capital and Heliogen
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ellomay and Heliogen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ellomay Capital and Heliogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heliogen 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 Heliogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heliogen has no effect on the direction of Ellomay Capital i.e., Ellomay Capital and Heliogen go up and down completely randomly.
Pair Corralation between Ellomay Capital and Heliogen
Given the investment horizon of 90 days Ellomay Capital is expected to generate 0.43 times more return on investment than Heliogen. However, Ellomay Capital is 2.31 times less risky than Heliogen. It trades about 0.01 of its potential returns per unit of risk. Heliogen is currently generating about -0.06 per unit of risk. If you would invest 1,790 in Ellomay Capital on October 24, 2024 and sell it today you would lose (90.00) from holding Ellomay Capital or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.84% |
| Values | Daily Returns |
Ellomay Capital vs. Heliogen
Performance |
| Timeline |
| Ellomay Capital |
| Heliogen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ellomay Capital and Heliogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellomay Capital and Heliogen
The main advantage of trading using opposite Ellomay Capital and Heliogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellomay Capital position performs unexpectedly, Heliogen 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 Heliogen will offset losses from the drop in Heliogen'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 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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