Correlation Between Eos Energy and Hayward Holdings
Can any of the company-specific risk be diversified away by investing in both Eos Energy and Hayward Holdings 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 Hayward Holdings 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 Hayward Holdings, you can compare the effects of market volatilities on Eos Energy and Hayward Holdings 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 Hayward Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Hayward Holdings.
Diversification Opportunities for Eos Energy and Hayward Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eos and Hayward is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Hayward Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hayward Holdings 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 Hayward Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hayward Holdings has no effect on the direction of Eos Energy i.e., Eos Energy and Hayward Holdings go up and down completely randomly.
Pair Corralation between Eos Energy and Hayward Holdings
Assuming the 90 days horizon Eos Energy Enterprises is expected to generate 14.46 times more return on investment than Hayward Holdings. However, Eos Energy is 14.46 times more volatile than Hayward Holdings. It trades about 0.35 of its potential returns per unit of risk. Hayward Holdings is currently generating about -0.06 per unit of risk. If you would invest 51.00 in Eos Energy Enterprises on October 20, 2024 and sell it today you would earn a total of 77.00 from holding Eos Energy Enterprises or generate 150.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Hayward Holdings
Performance |
| Timeline |
| Eos Energy Enterprises |
| Hayward Holdings |
Eos Energy and Hayward Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Hayward Holdings
The main advantage of trading using opposite Eos Energy and Hayward Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, Hayward Holdings 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 Hayward Holdings will offset losses from the drop in Hayward Holdings' long position.| Eos Energy vs. Eos Energy Enterprises | Eos Energy vs. CuriosityStream | Eos Energy vs. GCM Grosvenor | Eos Energy vs. Canoo Holdings |
| Hayward Holdings vs. Kimball Electronics | Hayward Holdings vs. Enersys | Hayward Holdings vs. Espey Mfg Electronics | Hayward Holdings vs. Energizer 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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