Correlation Between Enovix Corp and Elong Power
Can any of the company-specific risk be diversified away by investing in both Enovix Corp and Elong Power 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 Enovix Corp and Elong Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enovix Corp and Elong Power Holding, you can compare the effects of market volatilities on Enovix Corp and Elong Power 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 Enovix Corp with a short position of Elong Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enovix Corp and Elong Power.
Diversification Opportunities for Enovix Corp and Elong Power
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Enovix and Elong is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Enovix Corp and Elong Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elong Power Holding and Enovix Corp 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 Enovix Corp are associated (or correlated) with Elong Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elong Power Holding has no effect on the direction of Enovix Corp i.e., Enovix Corp and Elong Power go up and down completely randomly.
Pair Corralation between Enovix Corp and Elong Power
Given the investment horizon of 90 days Enovix Corp is expected to generate 0.5 times more return on investment than Elong Power. However, Enovix Corp is 1.99 times less risky than Elong Power. It trades about 0.05 of its potential returns per unit of risk. Elong Power Holding is currently generating about -0.21 per unit of risk. If you would invest 863.00 in Enovix Corp on September 2, 2024 and sell it today you would earn a total of 62.00 from holding Enovix Corp or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enovix Corp vs. Elong Power Holding
Performance |
| Timeline |
| Enovix Corp |
| Elong Power Holding |
Enovix Corp and Elong Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enovix Corp and Elong Power
The main advantage of trading using opposite Enovix Corp and Elong Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enovix Corp position performs unexpectedly, Elong Power 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 Elong Power will offset losses from the drop in Elong Power's long position.| Enovix Corp vs. Bloom Energy Corp | Enovix Corp vs. Microvast Holdings | Enovix Corp vs. Solid Power | Enovix Corp vs. FREYR Battery SA |
| Elong Power vs. Bloom Energy Corp | Elong Power vs. Electrovaya Common Shares | Elong Power vs. Enovix Corp | Elong Power vs. Eos Energy Enterprises |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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