Correlation Between ESS Tech and Xenonics Holdings
Can any of the company-specific risk be diversified away by investing in both ESS Tech and Xenonics Holdings 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 ESS Tech and Xenonics Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESS Tech and Xenonics Holdings, you can compare the effects of market volatilities on ESS Tech and Xenonics Holdings 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 ESS Tech with a short position of Xenonics Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESS Tech and Xenonics Holdings.
Diversification Opportunities for ESS Tech and Xenonics Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ESS and Xenonics is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding ESS Tech and Xenonics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenonics Holdings and ESS Tech 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 ESS Tech are associated (or correlated) with Xenonics Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenonics Holdings has no effect on the direction of ESS Tech i.e., ESS Tech and Xenonics Holdings go up and down completely randomly.
Pair Corralation between ESS Tech and Xenonics Holdings
If you would invest 0.17 in Xenonics Holdings on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Xenonics Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
ESS Tech vs. Xenonics Holdings
Performance |
| Timeline |
| ESS Tech |
| Xenonics Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ESS Tech and Xenonics Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESS Tech and Xenonics Holdings
The main advantage of trading using opposite ESS Tech and Xenonics Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESS Tech position performs unexpectedly, Xenonics Holdings 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 Xenonics Holdings will offset losses from the drop in Xenonics Holdings' long position.| ESS Tech vs. Fluence Energy | ESS Tech vs. Solid Power | ESS Tech vs. Eos Energy Enterprises | ESS Tech vs. FREYR Battery SA |
| Xenonics Holdings vs. Pioneer Power Solutions | Xenonics Holdings vs. CBAK Energy Technology | Xenonics Holdings vs. Ocean Power Technologies | Xenonics Holdings vs. Ideal Power |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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