Correlation Between Focus Universal and Energous
Can any of the company-specific risk be diversified away by investing in both Focus Universal and Energous 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 Focus Universal and Energous into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Universal and Energous, you can compare the effects of market volatilities on Focus Universal and Energous 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 Focus Universal with a short position of Energous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Universal and Energous.
Diversification Opportunities for Focus Universal and Energous
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Focus and Energous is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Focus Universal and Energous in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energous and Focus Universal 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 Focus Universal are associated (or correlated) with Energous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energous has no effect on the direction of Focus Universal i.e., Focus Universal and Energous go up and down completely randomly.
Pair Corralation between Focus Universal and Energous
Given the investment horizon of 90 days Focus Universal is expected to generate 1.1 times more return on investment than Energous. However, Focus Universal is 1.1 times more volatile than Energous. It trades about 0.0 of its potential returns per unit of risk. Energous is currently generating about -0.32 per unit of risk. If you would invest 26.00 in Focus Universal on August 24, 2024 and sell it today you would lose (0.50) from holding Focus Universal or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Universal vs. Energous
Performance |
| Timeline |
| Focus Universal |
| Energous |
Focus Universal and Energous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Universal and Energous
The main advantage of trading using opposite Focus Universal and Energous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Universal position performs unexpectedly, Energous 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 Energous will offset losses from the drop in Energous' long position.| Focus Universal vs. ESCO Technologies | Focus Universal vs. Genasys | Focus Universal vs. Cepton Inc | Focus Universal vs. Know Labs |
| Energous vs. Cepton Inc | Energous vs. SaverOne 2014 Ltd | Energous vs. Kraken Robotics | Energous vs. Focus Universal |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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