Correlation Between Eos Energy and CuriosityStream
Can any of the company-specific risk be diversified away by investing in both Eos Energy and CuriosityStream 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 CuriosityStream 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 CuriosityStream, you can compare the effects of market volatilities on Eos Energy and CuriosityStream 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 CuriosityStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and CuriosityStream.
Diversification Opportunities for Eos Energy and CuriosityStream
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eos and CuriosityStream is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and CuriosityStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CuriosityStream 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 CuriosityStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CuriosityStream has no effect on the direction of Eos Energy i.e., Eos Energy and CuriosityStream go up and down completely randomly.
Pair Corralation between Eos Energy and CuriosityStream
Assuming the 90 days horizon Eos Energy is expected to generate 11.92 times less return on investment than CuriosityStream. But when comparing it to its historical volatility, Eos Energy Enterprises is 10.83 times less risky than CuriosityStream. It trades about 0.13 of its potential returns per unit of risk. CuriosityStream is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1.20 in CuriosityStream on October 20, 2024 and sell it today you would earn a total of 2.04 from holding CuriosityStream or generate 170.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.47% |
| Values | Daily Returns |
Eos Energy Enterprises vs. CuriosityStream
Performance |
| Timeline |
| Eos Energy Enterprises |
| CuriosityStream |
Eos Energy and CuriosityStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and CuriosityStream
The main advantage of trading using opposite Eos Energy and CuriosityStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, CuriosityStream 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 CuriosityStream will offset losses from the drop in CuriosityStream's long position.| Eos Energy vs. Eos Energy Enterprises | Eos Energy vs. CuriosityStream | Eos Energy vs. GCM Grosvenor | Eos Energy vs. Canoo Holdings |
| CuriosityStream vs. Eos Energy Enterprises | CuriosityStream vs. CannBioRx Life Sciences | CuriosityStream vs. Advantage Solutions |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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