Correlation Between FREYR Battery and SKYX Platforms
Can any of the company-specific risk be diversified away by investing in both FREYR Battery and SKYX Platforms 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 SKYX Platforms 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 SKYX Platforms Corp, you can compare the effects of market volatilities on FREYR Battery and SKYX Platforms 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 SKYX Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of FREYR Battery and SKYX Platforms.
Diversification Opportunities for FREYR Battery and SKYX Platforms
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between FREYR and SKYX is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding FREYR Battery SA and SKYX Platforms Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKYX Platforms Corp 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 SKYX Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKYX Platforms Corp has no effect on the direction of FREYR Battery i.e., FREYR Battery and SKYX Platforms go up and down completely randomly.
Pair Corralation between FREYR Battery and SKYX Platforms
Given the investment horizon of 90 days FREYR Battery SA is expected to generate 1.8 times more return on investment than SKYX Platforms. However, FREYR Battery is 1.8 times more volatile than SKYX Platforms Corp. It trades about 0.13 of its potential returns per unit of risk. SKYX Platforms Corp is currently generating about 0.1 per unit of risk. If you would invest 113.00 in FREYR Battery SA on September 2, 2024 and sell it today you would earn a total of 94.00 from holding FREYR Battery SA or generate 83.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FREYR Battery SA vs. SKYX Platforms Corp
Performance |
| Timeline |
| FREYR Battery SA |
| SKYX Platforms Corp |
FREYR Battery and SKYX Platforms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FREYR Battery and SKYX Platforms
The main advantage of trading using opposite FREYR Battery and SKYX Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FREYR Battery position performs unexpectedly, SKYX Platforms 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 SKYX Platforms will offset losses from the drop in SKYX Platforms' long position.| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
| SKYX Platforms vs. Espey Mfg Electronics | SKYX Platforms vs. NeoVolta Warrant | SKYX Platforms vs. Kimball Electronics | SKYX Platforms vs. Hayward 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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