Correlation Between Loop Energy and Powerstorm Holdings
Can any of the company-specific risk be diversified away by investing in both Loop Energy and Powerstorm 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 Loop Energy and Powerstorm Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loop Energy and Powerstorm Holdings, you can compare the effects of market volatilities on Loop Energy and Powerstorm 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 Loop Energy with a short position of Powerstorm Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loop Energy and Powerstorm Holdings.
Diversification Opportunities for Loop Energy and Powerstorm Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loop and Powerstorm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Loop Energy and Powerstorm Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powerstorm Holdings and Loop Energy 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 Loop Energy are associated (or correlated) with Powerstorm Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powerstorm Holdings has no effect on the direction of Loop Energy i.e., Loop Energy and Powerstorm Holdings go up and down completely randomly.
Pair Corralation between Loop Energy and Powerstorm Holdings
Assuming the 90 days horizon Loop Energy is expected to generate 3.26 times more return on investment than Powerstorm Holdings. However, Loop Energy is 3.26 times more volatile than Powerstorm Holdings. It trades about 0.03 of its potential returns per unit of risk. Powerstorm Holdings is currently generating about 0.02 per unit of risk. If you would invest 75.00 in Loop Energy on September 5, 2024 and sell it today you would lose (67.00) from holding Loop Energy or give up 89.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Loop Energy vs. Powerstorm Holdings
Performance |
| Timeline |
| Loop Energy |
| Powerstorm Holdings |
Loop Energy and Powerstorm Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loop Energy and Powerstorm Holdings
The main advantage of trading using opposite Loop Energy and Powerstorm Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loop Energy position performs unexpectedly, Powerstorm 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 Powerstorm Holdings will offset losses from the drop in Powerstorm Holdings' long position.| Loop Energy vs. Legrand SA ADR | Loop Energy vs. AFC Energy plc | Loop Energy vs. Sunrise New Energy | Loop Energy vs. Tantalus Systems Holding |
| Powerstorm Holdings vs. Solid Power | Powerstorm Holdings vs. Plug Power | Powerstorm Holdings vs. FREYR Battery SA | Powerstorm Holdings vs. FuelCell Energy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |