Correlation Between Enovix Corp and Polar Power
Can any of the company-specific risk be diversified away by investing in both Enovix Corp and Polar 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 Polar 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 Polar Power, you can compare the effects of market volatilities on Enovix Corp and Polar 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 Polar Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enovix Corp and Polar Power.
Diversification Opportunities for Enovix Corp and Polar Power
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enovix and Polar is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Enovix Corp and Polar Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Power 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 Polar Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Power has no effect on the direction of Enovix Corp i.e., Enovix Corp and Polar Power go up and down completely randomly.
Pair Corralation between Enovix Corp and Polar Power
Given the investment horizon of 90 days Enovix Corp is expected to generate 2.32 times less return on investment than Polar Power. But when comparing it to its historical volatility, Enovix Corp is 1.02 times less risky than Polar Power. It trades about 0.01 of its potential returns per unit of risk. Polar Power is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 323.00 in Polar Power on August 24, 2024 and sell it today you would lose (24.00) from holding Polar Power or give up 7.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enovix Corp vs. Polar Power
Performance |
| Timeline |
| Enovix Corp |
| Polar Power |
Enovix Corp and Polar Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enovix Corp and Polar Power
The main advantage of trading using opposite Enovix Corp and Polar Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enovix Corp position performs unexpectedly, Polar 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 Polar Power will offset losses from the drop in Polar Power's long position.| Enovix Corp vs. ESS Tech | Enovix Corp vs. FREYR Battery SA | Enovix Corp vs. Microvast Holdings | Enovix Corp vs. Eos Energy Enterprises |
| Polar Power vs. Bloom Energy Corp | Polar Power vs. Kimball Electronics | Polar Power vs. Enovix Corp | Polar Power vs. Sunrise New Energy |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |