Correlation Between Fluence Energy and Enovix Corp
Can any of the company-specific risk be diversified away by investing in both Fluence Energy and Enovix Corp 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 Enovix Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluence Energy and Enovix Corp, you can compare the effects of market volatilities on Fluence Energy and Enovix Corp 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 Enovix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluence Energy and Enovix Corp.
Diversification Opportunities for Fluence Energy and Enovix Corp
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fluence and Enovix is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fluence Energy and Enovix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enovix Corp 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 Enovix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enovix Corp has no effect on the direction of Fluence Energy i.e., Fluence Energy and Enovix Corp go up and down completely randomly.
Pair Corralation between Fluence Energy and Enovix Corp
Given the investment horizon of 90 days Fluence Energy is expected to generate 0.75 times more return on investment than Enovix Corp. However, Fluence Energy is 1.33 times less risky than Enovix Corp. It trades about 0.03 of its potential returns per unit of risk. Enovix Corp is currently generating about 0.02 per unit of risk. If you would invest 2,027 in Fluence Energy on August 24, 2024 and sell it today you would earn a total of 91.00 from holding Fluence Energy or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluence Energy vs. Enovix Corp
Performance |
| Timeline |
| Fluence Energy |
| Enovix Corp |
Fluence Energy and Enovix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluence Energy and Enovix Corp
The main advantage of trading using opposite Fluence Energy and Enovix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluence Energy position performs unexpectedly, Enovix Corp 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 Enovix Corp will offset losses from the drop in Enovix Corp'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 |
| Enovix Corp vs. ESS Tech | Enovix Corp vs. FREYR Battery SA | Enovix Corp vs. Microvast Holdings | Enovix Corp vs. Eos Energy Enterprises |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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