Correlation Between Enlight Renewable and Energy Vault
Can any of the company-specific risk be diversified away by investing in both Enlight Renewable and Energy Vault 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 Enlight Renewable and Energy Vault into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enlight Renewable Energy and Energy Vault Holdings, you can compare the effects of market volatilities on Enlight Renewable and Energy Vault 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 Enlight Renewable with a short position of Energy Vault. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlight Renewable and Energy Vault.
Diversification Opportunities for Enlight Renewable and Energy Vault
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enlight and Energy is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy and Energy Vault Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Vault Holdings and Enlight Renewable 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 Enlight Renewable Energy are associated (or correlated) with Energy Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Vault Holdings has no effect on the direction of Enlight Renewable i.e., Enlight Renewable and Energy Vault go up and down completely randomly.
Pair Corralation between Enlight Renewable and Energy Vault
Given the investment horizon of 90 days Enlight Renewable is expected to generate 4.08 times less return on investment than Energy Vault. But when comparing it to its historical volatility, Enlight Renewable Energy is 3.53 times less risky than Energy Vault. It trades about 0.06 of its potential returns per unit of risk. Energy Vault Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 172.00 in Energy Vault Holdings on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Energy Vault Holdings or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enlight Renewable Energy vs. Energy Vault Holdings
Performance |
| Timeline |
| Enlight Renewable Energy |
| Energy Vault Holdings |
Enlight Renewable and Energy Vault Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enlight Renewable and Energy Vault
The main advantage of trading using opposite Enlight Renewable and Energy Vault positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlight Renewable position performs unexpectedly, Energy Vault 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 Energy Vault will offset losses from the drop in Energy Vault's long position.| Enlight Renewable vs. Atlantica Sustainable Infrastructure | Enlight Renewable vs. Verde Clean Fuels | Enlight Renewable vs. ReNew Energy Global | Enlight Renewable vs. Ellomay Capital |
| Energy Vault vs. Renew Energy Global | Energy Vault vs. Fluence Energy | Energy Vault vs. Enlight Renewable Energy | Energy Vault vs. Advent Technologies Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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