Correlation Between Eos Energy and Enersys
Can any of the company-specific risk be diversified away by investing in both Eos Energy and Enersys 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 Enersys 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 Enersys, you can compare the effects of market volatilities on Eos Energy and Enersys 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 Enersys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Enersys.
Diversification Opportunities for Eos Energy and Enersys
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eos and Enersys is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Enersys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersys 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 Enersys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersys has no effect on the direction of Eos Energy i.e., Eos Energy and Enersys go up and down completely randomly.
Pair Corralation between Eos Energy and Enersys
Given the investment horizon of 90 days Eos Energy Enterprises is expected to under-perform the Enersys. In addition to that, Eos Energy is 3.48 times more volatile than Enersys. It trades about -0.1 of its total potential returns per unit of risk. Enersys is currently generating about -0.03 per unit of volatility. 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 |
Eos Energy Enterprises vs. Enersys
Performance |
| Timeline |
| Eos Energy Enterprises |
| Enersys |
Eos Energy and Enersys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Enersys
The main advantage of trading using opposite Eos Energy and Enersys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, Enersys 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 Enersys will offset losses from the drop in Enersys' long position.| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
| Enersys vs. Advanced Energy Industries | Enersys vs. Hubbell | Enersys vs. Acuity Brands | Enersys vs. Kimball Electronics |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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