Correlation Between Ensurge Micropower and Curtiss Motorcycles
Can any of the company-specific risk be diversified away by investing in both Ensurge Micropower and Curtiss Motorcycles 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 Ensurge Micropower and Curtiss Motorcycles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ensurge Micropower ASA and Curtiss Motorcycles, you can compare the effects of market volatilities on Ensurge Micropower and Curtiss Motorcycles 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 Ensurge Micropower with a short position of Curtiss Motorcycles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensurge Micropower and Curtiss Motorcycles.
Diversification Opportunities for Ensurge Micropower and Curtiss Motorcycles
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ensurge and Curtiss is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ensurge Micropower ASA and Curtiss Motorcycles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss Motorcycles and Ensurge Micropower 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 Ensurge Micropower ASA are associated (or correlated) with Curtiss Motorcycles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtiss Motorcycles has no effect on the direction of Ensurge Micropower i.e., Ensurge Micropower and Curtiss Motorcycles go up and down completely randomly.
Pair Corralation between Ensurge Micropower and Curtiss Motorcycles
Assuming the 90 days horizon Ensurge Micropower ASA is expected to generate 1.76 times more return on investment than Curtiss Motorcycles. However, Ensurge Micropower is 1.76 times more volatile than Curtiss Motorcycles. It trades about 0.21 of its potential returns per unit of risk. Curtiss Motorcycles is currently generating about 0.06 per unit of risk. If you would invest 401.00 in Ensurge Micropower ASA on September 12, 2024 and sell it today you would lose (371.00) from holding Ensurge Micropower ASA or give up 92.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.92% |
| Values | Daily Returns |
Ensurge Micropower ASA vs. Curtiss Motorcycles
Performance |
| Timeline |
| Ensurge Micropower ASA |
| Curtiss Motorcycles |
Ensurge Micropower and Curtiss Motorcycles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensurge Micropower and Curtiss Motorcycles
The main advantage of trading using opposite Ensurge Micropower and Curtiss Motorcycles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensurge Micropower position performs unexpectedly, Curtiss Motorcycles 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 Curtiss Motorcycles will offset losses from the drop in Curtiss Motorcycles' long position.| Ensurge Micropower vs. Ouster Inc | Ensurge Micropower vs. Kopin | Ensurge Micropower vs. Vicor | Ensurge Micropower vs. Fabrinet |
| Curtiss Motorcycles vs. Life Electric Vehicles | Curtiss Motorcycles vs. Evil Empire Designs | Curtiss Motorcycles vs. Twin Vee Powercats | Curtiss Motorcycles vs. LCI Industries |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world |