Correlation Between Eos Energy and Ocean Power
Can any of the company-specific risk be diversified away by investing in both Eos Energy and Ocean 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 Ocean 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 Ocean Power Technologies, you can compare the effects of market volatilities on Eos Energy and Ocean 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 Ocean Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Ocean Power.
Diversification Opportunities for Eos Energy and Ocean Power
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eos and Ocean is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Ocean Power Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Power Technologies 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 Ocean Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Power Technologies has no effect on the direction of Eos Energy i.e., Eos Energy and Ocean Power go up and down completely randomly.
Pair Corralation between Eos Energy and Ocean Power
Given the investment horizon of 90 days Eos Energy Enterprises is expected to under-perform the Ocean Power. In addition to that, Eos Energy is 2.06 times more volatile than Ocean Power Technologies. It trades about -0.13 of its total potential returns per unit of risk. Ocean Power Technologies is currently generating about 0.11 per unit of volatility. If you would invest 15.00 in Ocean Power Technologies on August 27, 2024 and sell it today you would earn a total of 1.00 from holding Ocean Power Technologies or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Ocean Power Technologies
Performance |
| Timeline |
| Eos Energy Enterprises |
| Ocean Power Technologies |
Eos Energy and Ocean Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Ocean Power
The main advantage of trading using opposite Eos Energy and Ocean Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, Ocean 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 Ocean Power will offset losses from the drop in Ocean 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 |
| Ocean Power vs. Pioneer Power Solutions | Ocean Power vs. CBAK Energy Technology | Ocean Power vs. Ideal Power | Ocean Power vs. Expion360 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |