Correlation Between FREYR Battery and Eos Energy
Can any of the company-specific risk be diversified away by investing in both FREYR Battery and Eos Energy 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 Eos Energy 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 Eos Energy Enterprises, you can compare the effects of market volatilities on FREYR Battery and Eos Energy 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 Eos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of FREYR Battery and Eos Energy.
Diversification Opportunities for FREYR Battery and Eos Energy
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FREYR and Eos is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding FREYR Battery SA and Eos Energy Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eos Energy Enterprises 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 Eos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eos Energy Enterprises has no effect on the direction of FREYR Battery i.e., FREYR Battery and Eos Energy go up and down completely randomly.
Pair Corralation between FREYR Battery and Eos Energy
Given the investment horizon of 90 days FREYR Battery SA is expected to generate 1.11 times more return on investment than Eos Energy. However, FREYR Battery is 1.11 times more volatile than Eos Energy Enterprises. It trades about 0.27 of its potential returns per unit of risk. Eos Energy Enterprises is currently generating about 0.01 per unit of risk. If you would invest 105.00 in FREYR Battery SA on August 28, 2024 and sell it today you would earn a total of 118.00 from holding FREYR Battery SA or generate 112.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FREYR Battery SA vs. Eos Energy Enterprises
Performance |
| Timeline |
| FREYR Battery SA |
| Eos Energy Enterprises |
FREYR Battery and Eos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FREYR Battery and Eos Energy
The main advantage of trading using opposite FREYR Battery and Eos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FREYR Battery position performs unexpectedly, Eos Energy 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 Eos Energy will offset losses from the drop in Eos Energy's long position.| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
| Eos Energy vs. Eos Energy Enterprises | Eos Energy vs. CuriosityStream | Eos Energy vs. GCM Grosvenor | Eos Energy vs. Canoo Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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