Correlation Between FREYR Battery and Elong Power
Can any of the company-specific risk be diversified away by investing in both FREYR Battery and Elong Power 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 Elong Power 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 Elong Power Holding, you can compare the effects of market volatilities on FREYR Battery and Elong Power 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 Elong Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of FREYR Battery and Elong Power.
Diversification Opportunities for FREYR Battery and Elong Power
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FREYR and Elong is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding FREYR Battery SA and Elong Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elong Power Holding 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 Elong Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elong Power Holding has no effect on the direction of FREYR Battery i.e., FREYR Battery and Elong Power go up and down completely randomly.
Pair Corralation between FREYR Battery and Elong Power
Given the investment horizon of 90 days FREYR Battery SA is expected to generate 0.92 times more return on investment than Elong Power. However, FREYR Battery SA is 1.09 times less risky than Elong Power. It trades about 0.27 of its potential returns per unit of risk. Elong Power Holding is currently generating about -0.28 per unit of risk. If you would invest 98.00 in FREYR Battery SA on September 2, 2024 and sell it today you would earn a total of 109.00 from holding FREYR Battery SA or generate 111.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FREYR Battery SA vs. Elong Power Holding
Performance |
| Timeline |
| FREYR Battery SA |
| Elong Power Holding |
FREYR Battery and Elong Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FREYR Battery and Elong Power
The main advantage of trading using opposite FREYR Battery and Elong Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FREYR Battery position performs unexpectedly, Elong Power 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 Elong Power will offset losses from the drop in Elong Power's long position.| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
| Elong Power vs. Bloom Energy Corp | Elong Power vs. Electrovaya Common Shares | Elong Power vs. Enovix Corp | Elong Power 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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