Correlation Between FREYR Battery and Amprius Technologies
Can any of the company-specific risk be diversified away by investing in both FREYR Battery and Amprius Technologies 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 FREYR Battery and Amprius Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FREYR Battery SA and Amprius Technologies, you can compare the effects of market volatilities on FREYR Battery and Amprius Technologies 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 FREYR Battery with a short position of Amprius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FREYR Battery and Amprius Technologies.
Diversification Opportunities for FREYR Battery and Amprius Technologies
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FREYR and Amprius is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding FREYR Battery SA and Amprius Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amprius Technologies and FREYR Battery 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 FREYR Battery SA are associated (or correlated) with Amprius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amprius Technologies has no effect on the direction of FREYR Battery i.e., FREYR Battery and Amprius Technologies go up and down completely randomly.
Pair Corralation between FREYR Battery and Amprius Technologies
Given the investment horizon of 90 days FREYR Battery SA is expected to generate 1.31 times more return on investment than Amprius Technologies. However, FREYR Battery is 1.31 times more volatile than Amprius Technologies. It trades about 0.31 of its potential returns per unit of risk. Amprius Technologies is currently generating about 0.14 per unit of risk. If you would invest 101.00 in FREYR Battery SA on August 24, 2024 and sell it today you would earn a total of 152.00 from holding FREYR Battery SA or generate 150.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FREYR Battery SA vs. Amprius Technologies
Performance |
| Timeline |
| FREYR Battery SA |
| Amprius Technologies |
FREYR Battery and Amprius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FREYR Battery and Amprius Technologies
The main advantage of trading using opposite FREYR Battery and Amprius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FREYR Battery position performs unexpectedly, Amprius Technologies 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 Amprius Technologies will offset losses from the drop in Amprius Technologies' long position.| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
| Amprius Technologies vs. Eos Energy Enterprises | Amprius Technologies vs. FREYR Battery SA | Amprius Technologies vs. Microvast Holdings | Amprius Technologies vs. Chardan NexTech Acquisition |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |