Correlation Between Enovix Corp and Orion Energy
Can any of the company-specific risk be diversified away by investing in both Enovix Corp and Orion 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 Enovix Corp and Orion Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enovix Corp and Orion Energy Systems, you can compare the effects of market volatilities on Enovix Corp and Orion 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 Enovix Corp with a short position of Orion Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enovix Corp and Orion Energy.
Diversification Opportunities for Enovix Corp and Orion Energy
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enovix and Orion is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Enovix Corp and Orion Energy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orion Energy Systems 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 Orion Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orion Energy Systems has no effect on the direction of Enovix Corp i.e., Enovix Corp and Orion Energy go up and down completely randomly.
Pair Corralation between Enovix Corp and Orion Energy
Given the investment horizon of 90 days Enovix Corp is expected to generate 1.7 times more return on investment than Orion Energy. However, Enovix Corp is 1.7 times more volatile than Orion Energy Systems. It trades about 0.01 of its potential returns per unit of risk. Orion Energy Systems is currently generating about -0.04 per unit of risk. If you would invest 1,264 in Enovix Corp on January 9, 2025 and sell it today you would lose (599.00) from holding Enovix Corp or give up 47.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enovix Corp vs. Orion Energy Systems
Performance |
| Timeline |
| Enovix Corp |
| Orion Energy Systems |
Enovix Corp and Orion Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enovix Corp and Orion Energy
The main advantage of trading using opposite Enovix Corp and Orion Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enovix Corp position performs unexpectedly, Orion 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 Orion Energy will offset losses from the drop in Orion Energy's long position.| Enovix Corp vs. ESS Tech | Enovix Corp vs. Microvast Holdings | Enovix Corp vs. Eos Energy Enterprises | Enovix Corp vs. Solid Power |
| Orion Energy vs. Polar Power | Orion Energy vs. CBAK Energy Technology | Orion Energy vs. Pioneer Power Solutions | Orion Energy vs. Lightbridge Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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