Correlation Between Eos Energy and FuelCell Energy
Can any of the company-specific risk be diversified away by investing in both Eos Energy and FuelCell 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 Eos Energy and FuelCell Energy 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 FuelCell Energy, you can compare the effects of market volatilities on Eos Energy and FuelCell 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 Eos Energy with a short position of FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and FuelCell Energy.
Diversification Opportunities for Eos Energy and FuelCell Energy
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eos and FuelCell is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell Energy 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 FuelCell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelCell Energy has no effect on the direction of Eos Energy i.e., Eos Energy and FuelCell Energy go up and down completely randomly.
Pair Corralation between Eos Energy and FuelCell Energy
Given the investment horizon of 90 days Eos Energy Enterprises is expected to under-perform the FuelCell Energy. But the stock apears to be less risky and, when comparing its historical volatility, Eos Energy Enterprises is 1.78 times less risky than FuelCell Energy. The stock trades about -0.11 of its potential returns per unit of risk. The FuelCell Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,101 in FuelCell Energy on August 27, 2024 and sell it today you would lose (57.00) from holding FuelCell Energy or give up 5.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. FuelCell Energy
Performance |
| Timeline |
| Eos Energy Enterprises |
| FuelCell Energy |
Eos Energy and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and FuelCell Energy
The main advantage of trading using opposite Eos Energy and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, FuelCell 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 FuelCell Energy will offset losses from the drop in FuelCell Energy'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 |
| FuelCell Energy vs. Bloom Energy Corp | FuelCell Energy vs. Microvast Holdings | FuelCell Energy vs. Solid Power | FuelCell Energy vs. Enovix 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |