Correlation Between Fluence Energy and Ellomay Capital
Can any of the company-specific risk be diversified away by investing in both Fluence Energy and Ellomay Capital 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 Fluence Energy and Ellomay Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluence Energy and Ellomay Capital, you can compare the effects of market volatilities on Fluence Energy and Ellomay Capital 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 Fluence Energy with a short position of Ellomay Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluence Energy and Ellomay Capital.
Diversification Opportunities for Fluence Energy and Ellomay Capital
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fluence and Ellomay is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fluence Energy and Ellomay Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellomay Capital and Fluence 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 Fluence Energy are associated (or correlated) with Ellomay Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellomay Capital has no effect on the direction of Fluence Energy i.e., Fluence Energy and Ellomay Capital go up and down completely randomly.
Pair Corralation between Fluence Energy and Ellomay Capital
Given the investment horizon of 90 days Fluence Energy is expected to generate 1.19 times less return on investment than Ellomay Capital. In addition to that, Fluence Energy is 1.69 times more volatile than Ellomay Capital. It trades about 0.14 of its total potential returns per unit of risk. Ellomay Capital is currently generating about 0.28 per unit of volatility. If you would invest 1,395 in Ellomay Capital on August 28, 2024 and sell it today you would earn a total of 254.00 from holding Ellomay Capital or generate 18.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluence Energy vs. Ellomay Capital
Performance |
| Timeline |
| Fluence Energy |
| Ellomay Capital |
Fluence Energy and Ellomay Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluence Energy and Ellomay Capital
The main advantage of trading using opposite Fluence Energy and Ellomay Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluence Energy position performs unexpectedly, Ellomay Capital 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 Ellomay Capital will offset losses from the drop in Ellomay Capital's long position.| Fluence Energy vs. Altus Power | Fluence Energy vs. Ormat Technologies | Fluence Energy vs. Enlight Renewable Energy | Fluence Energy vs. Advent Technologies Holdings |
| Ellomay Capital vs. Enlight Renewable Energy | Ellomay Capital vs. Renew Energy Global | Ellomay Capital vs. Clearway Energy Class | Ellomay Capital vs. Excelerate Energy |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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