Correlation Between Eos Energy and Elong Power
Can any of the company-specific risk be diversified away by investing in both Eos Energy 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 Eos Energy and Elong Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eos Energy Enterprises and Elong Power Holding, you can compare the effects of market volatilities on Eos Energy 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 Eos Energy with a short position of Elong Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Elong Power.
Diversification Opportunities for Eos Energy and Elong Power
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eos and Elong is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises 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 Eos Energy 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 Eos Energy Enterprises 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 Eos Energy i.e., Eos Energy and Elong Power go up and down completely randomly.
Pair Corralation between Eos Energy and Elong Power
Given the investment horizon of 90 days Eos Energy Enterprises is expected to generate 1.63 times more return on investment than Elong Power. However, Eos Energy is 1.63 times more volatile than Elong Power Holding. It trades about 0.07 of its potential returns per unit of risk. Elong Power Holding is currently generating about -0.08 per unit of risk. If you would invest 97.00 in Eos Energy Enterprises on September 2, 2024 and sell it today you would earn a total of 198.00 from holding Eos Energy Enterprises or generate 204.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.85% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Elong Power Holding
Performance |
| Timeline |
| Eos Energy Enterprises |
| Elong Power Holding |
Eos Energy and Elong Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Elong Power
The main advantage of trading using opposite Eos Energy and Elong Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy 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.| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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