Correlation Between Hayward Holdings and Eos Energy
Can any of the company-specific risk be diversified away by investing in both Hayward Holdings 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 Hayward Holdings and Eos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hayward Holdings and Eos Energy Enterprises, you can compare the effects of market volatilities on Hayward Holdings 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 Hayward Holdings with a short position of Eos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hayward Holdings and Eos Energy.
Diversification Opportunities for Hayward Holdings and Eos Energy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hayward and Eos is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hayward Holdings 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 Hayward Holdings 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 Hayward Holdings 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 Hayward Holdings i.e., Hayward Holdings and Eos Energy go up and down completely randomly.
Pair Corralation between Hayward Holdings and Eos Energy
Given the investment horizon of 90 days Hayward Holdings is expected to generate 0.29 times more return on investment than Eos Energy. However, Hayward Holdings is 3.42 times less risky than Eos Energy. It trades about 0.24 of its potential returns per unit of risk. Eos Energy Enterprises is currently generating about -0.1 per unit of risk. If you would invest 1,480 in Hayward Holdings on August 28, 2024 and sell it today you would earn a total of 160.00 from holding Hayward Holdings or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hayward Holdings vs. Eos Energy Enterprises
Performance |
| Timeline |
| Hayward Holdings |
| Eos Energy Enterprises |
Hayward Holdings and Eos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hayward Holdings and Eos Energy
The main advantage of trading using opposite Hayward Holdings and Eos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hayward Holdings 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.| Hayward Holdings vs. Kimball Electronics | Hayward Holdings vs. Enersys | Hayward Holdings vs. Espey Mfg Electronics | Hayward Holdings vs. Energizer Holdings |
| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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