Correlation Between FREYR Battery and Loop Energy
Can any of the company-specific risk be diversified away by investing in both FREYR Battery and Loop 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 Loop 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 Loop Energy, you can compare the effects of market volatilities on FREYR Battery and Loop 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 Loop Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of FREYR Battery and Loop Energy.
Diversification Opportunities for FREYR Battery and Loop Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FREYR and Loop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FREYR Battery SA and Loop Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Energy 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 Loop Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Energy has no effect on the direction of FREYR Battery i.e., FREYR Battery and Loop Energy go up and down completely randomly.
Pair Corralation between FREYR Battery and Loop Energy
If you would invest 101.00 in FREYR Battery SA on August 25, 2024 and sell it today you would earn a total of 144.00 from holding FREYR Battery SA or generate 142.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FREYR Battery SA vs. Loop Energy
Performance |
| Timeline |
| FREYR Battery SA |
| Loop Energy |
FREYR Battery and Loop Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FREYR Battery and Loop Energy
The main advantage of trading using opposite FREYR Battery and Loop Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FREYR Battery position performs unexpectedly, Loop 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 Loop Energy will offset losses from the drop in Loop 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 |
| Loop Energy vs. FREYR Battery SA | Loop Energy vs. nVent Electric PLC | Loop Energy vs. Hubbell | Loop Energy vs. Advanced Energy Industries |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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