Correlation Between Enersys and Eos Energy
Can any of the company-specific risk be diversified away by investing in both Enersys and Eos Energy 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 Enersys and Eos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enersys and Eos Energy Enterprises, you can compare the effects of market volatilities on Enersys and Eos Energy 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 Enersys with a short position of Eos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enersys and Eos Energy.
Diversification Opportunities for Enersys and Eos Energy
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enersys and Eos is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Enersys and Eos Energy Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eos Energy Enterprises and Enersys 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 Enersys are associated (or correlated) with Eos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eos Energy Enterprises has no effect on the direction of Enersys i.e., Enersys and Eos Energy go up and down completely randomly.
Pair Corralation between Enersys and Eos Energy
Considering the 90-day investment horizon Enersys is expected to generate 0.29 times more return on investment than Eos Energy. However, Enersys is 3.48 times less risky than Eos Energy. It trades about -0.03 of its potential returns per unit of risk. Eos Energy Enterprises is currently generating about -0.1 per unit of risk. If you would invest 10,078 in Enersys on August 28, 2024 and sell it today you would lose (178.00) from holding Enersys or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enersys vs. Eos Energy Enterprises
Performance |
| Timeline |
| Enersys |
| Eos Energy Enterprises |
Enersys and Eos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enersys and Eos Energy
The main advantage of trading using opposite Enersys and Eos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enersys position performs unexpectedly, Eos Energy 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 Eos Energy will offset losses from the drop in Eos Energy's long position.| Enersys vs. Advanced Energy Industries | Enersys vs. Hubbell | Enersys vs. Acuity Brands | Enersys vs. Kimball Electronics |
| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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