Correlation Between Eos Energy and Barloworld
Can any of the company-specific risk be diversified away by investing in both Eos Energy and Barloworld 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 Barloworld 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 Barloworld Ltd ADR, you can compare the effects of market volatilities on Eos Energy and Barloworld 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 Barloworld. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Barloworld.
Diversification Opportunities for Eos Energy and Barloworld
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eos and Barloworld is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Barloworld Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barloworld ADR 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 Barloworld. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barloworld ADR has no effect on the direction of Eos Energy i.e., Eos Energy and Barloworld go up and down completely randomly.
Pair Corralation between Eos Energy and Barloworld
Assuming the 90 days horizon Eos Energy Enterprises is expected to generate 2.81 times more return on investment than Barloworld. However, Eos Energy is 2.81 times more volatile than Barloworld Ltd ADR. It trades about 0.04 of its potential returns per unit of risk. Barloworld Ltd ADR is currently generating about 0.07 per unit of risk. If you would invest 21.00 in Eos Energy Enterprises on September 2, 2024 and sell it today you would lose (3.00) from holding Eos Energy Enterprises or give up 14.29% 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. Barloworld Ltd ADR
Performance |
| Timeline |
| Eos Energy Enterprises |
| Barloworld ADR |
Eos Energy and Barloworld Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Barloworld
The main advantage of trading using opposite Eos Energy and Barloworld positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, Barloworld 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 Barloworld will offset losses from the drop in Barloworld's long position.| Eos Energy vs. Eos Energy Enterprises | Eos Energy vs. CuriosityStream | Eos Energy vs. GCM Grosvenor | Eos Energy vs. Canoo Holdings |
| Barloworld vs. Hertz Global Holdings | Barloworld vs. United Rentals | Barloworld vs. Ryder System | Barloworld vs. Herc Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |