Correlation Between Energy Vault and Cerberus Cyber
Can any of the company-specific risk be diversified away by investing in both Energy Vault and Cerberus Cyber 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 Energy Vault and Cerberus Cyber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Vault Holdings and Cerberus Cyber Sentinel, you can compare the effects of market volatilities on Energy Vault and Cerberus Cyber 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 Energy Vault with a short position of Cerberus Cyber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Vault and Cerberus Cyber.
Diversification Opportunities for Energy Vault and Cerberus Cyber
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Energy and Cerberus is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Energy Vault Holdings and Cerberus Cyber Sentinel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerberus Cyber Sentinel and Energy Vault 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 Energy Vault Holdings are associated (or correlated) with Cerberus Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerberus Cyber Sentinel has no effect on the direction of Energy Vault i.e., Energy Vault and Cerberus Cyber go up and down completely randomly.
Pair Corralation between Energy Vault and Cerberus Cyber
Given the investment horizon of 90 days Energy Vault Holdings is expected to generate 0.84 times more return on investment than Cerberus Cyber. However, Energy Vault Holdings is 1.19 times less risky than Cerberus Cyber. It trades about 0.02 of its potential returns per unit of risk. Cerberus Cyber Sentinel is currently generating about 0.0 per unit of risk. If you would invest 211.00 in Energy Vault Holdings on December 11, 2024 and sell it today you would lose (93.00) from holding Energy Vault Holdings or give up 44.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Vault Holdings vs. Cerberus Cyber Sentinel
Performance |
| Timeline |
| Energy Vault Holdings |
| Cerberus Cyber Sentinel |
Energy Vault and Cerberus Cyber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Vault and Cerberus Cyber
The main advantage of trading using opposite Energy Vault and Cerberus Cyber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Vault position performs unexpectedly, Cerberus Cyber 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 Cerberus Cyber will offset losses from the drop in Cerberus Cyber's long position.| Energy Vault vs. Renew Energy Global | ||
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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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