Correlation Between Fusion Fuel and Energy Vault
Can any of the company-specific risk be diversified away by investing in both Fusion Fuel and Energy Vault 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 Fusion Fuel and Energy Vault into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusion Fuel Green and Energy Vault Holdings, you can compare the effects of market volatilities on Fusion Fuel and Energy Vault 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 Fusion Fuel with a short position of Energy Vault. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusion Fuel and Energy Vault.
Diversification Opportunities for Fusion Fuel and Energy Vault
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fusion and Energy is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Fuel Green and Energy Vault Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Vault Holdings and Fusion Fuel 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 Fusion Fuel Green are associated (or correlated) with Energy Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Vault Holdings has no effect on the direction of Fusion Fuel i.e., Fusion Fuel and Energy Vault go up and down completely randomly.
Pair Corralation between Fusion Fuel and Energy Vault
Given the investment horizon of 90 days Fusion Fuel Green is expected to under-perform the Energy Vault. In addition to that, Fusion Fuel is 1.35 times more volatile than Energy Vault Holdings. It trades about -0.19 of its total potential returns per unit of risk. Energy Vault Holdings is currently generating about -0.01 per unit of volatility. If you would invest 176.00 in Energy Vault Holdings on August 24, 2024 and sell it today you would lose (22.00) from holding Energy Vault Holdings or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fusion Fuel Green vs. Energy Vault Holdings
Performance |
| Timeline |
| Fusion Fuel Green |
| Energy Vault Holdings |
Fusion Fuel and Energy Vault Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fusion Fuel and Energy Vault
The main advantage of trading using opposite Fusion Fuel and Energy Vault positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusion Fuel position performs unexpectedly, Energy Vault 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 Energy Vault will offset losses from the drop in Energy Vault's long position.| Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Fluence Energy | Fusion Fuel vs. Enlight Renewable Energy | Fusion Fuel vs. Renew Energy Global |
| Energy Vault vs. Renew Energy Global | Energy Vault vs. Fluence Energy | Energy Vault vs. Enlight Renewable Energy | Energy Vault vs. Advent Technologies 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |