Correlation Between Ensurge Micropower and Ouster
Can any of the company-specific risk be diversified away by investing in both Ensurge Micropower and Ouster 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 Ouster 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 Ouster Inc, you can compare the effects of market volatilities on Ensurge Micropower and Ouster 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 Ouster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensurge Micropower and Ouster.
Diversification Opportunities for Ensurge Micropower and Ouster
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ensurge and Ouster is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ensurge Micropower ASA and Ouster Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ouster Inc 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 Ouster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ouster Inc has no effect on the direction of Ensurge Micropower i.e., Ensurge Micropower and Ouster go up and down completely randomly.
Pair Corralation between Ensurge Micropower and Ouster
Assuming the 90 days horizon Ensurge Micropower ASA is expected to generate 5.72 times more return on investment than Ouster. However, Ensurge Micropower is 5.72 times more volatile than Ouster Inc. It trades about 0.11 of its potential returns per unit of risk. Ouster Inc is currently generating about 0.05 per unit of risk. If you would invest 50.00 in Ensurge Micropower ASA on September 12, 2024 and sell it today you would lose (20.00) from holding Ensurge Micropower ASA or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.69% |
| Values | Daily Returns |
Ensurge Micropower ASA vs. Ouster Inc
Performance |
| Timeline |
| Ensurge Micropower ASA |
| Ouster Inc |
Ensurge Micropower and Ouster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensurge Micropower and Ouster
The main advantage of trading using opposite Ensurge Micropower and Ouster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensurge Micropower position performs unexpectedly, Ouster 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 Ouster will offset losses from the drop in Ouster's long position.| Ensurge Micropower vs. Ouster Inc | Ensurge Micropower vs. Kopin | Ensurge Micropower vs. Vicor | Ensurge Micropower vs. Fabrinet |
| Ouster vs. KULR Technology Group | Ouster vs. LightPath Technologies | Ouster vs. Daktronics | Ouster vs. Kopin |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |