Correlation Between Energy Vault and Fusion Fuel
Can any of the company-specific risk be diversified away by investing in both Energy Vault and Fusion Fuel 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 Fusion Fuel 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 Fusion Fuel Green, you can compare the effects of market volatilities on Energy Vault and Fusion Fuel 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 Fusion Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Vault and Fusion Fuel.
Diversification Opportunities for Energy Vault and Fusion Fuel
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Energy and Fusion is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Energy Vault Holdings and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green 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 Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of Energy Vault i.e., Energy Vault and Fusion Fuel go up and down completely randomly.
Pair Corralation between Energy Vault and Fusion Fuel
Given the investment horizon of 90 days Energy Vault Holdings is expected to generate 0.8 times more return on investment than Fusion Fuel. However, Energy Vault Holdings is 1.26 times less risky than Fusion Fuel. It trades about 0.22 of its potential returns per unit of risk. Fusion Fuel Green is currently generating about 0.1 per unit of risk. If you would invest 151.00 in Energy Vault Holdings on October 20, 2024 and sell it today you would earn a total of 52.00 from holding Energy Vault Holdings or generate 34.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Energy Vault Holdings vs. Fusion Fuel Green
Performance |
| Timeline |
| Energy Vault Holdings |
| Fusion Fuel Green |
Energy Vault and Fusion Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Vault and Fusion Fuel
The main advantage of trading using opposite Energy Vault and Fusion Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Vault position performs unexpectedly, Fusion Fuel 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 Fusion Fuel will offset losses from the drop in Fusion Fuel's long position.| Energy Vault vs. Renew Energy Global | Energy Vault vs. Fluence Energy | Energy Vault vs. Enlight Renewable Energy | Energy Vault vs. Advent Technologies Holdings |
| Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Fluence Energy | Fusion Fuel vs. Enlight Renewable Energy | Fusion Fuel vs. Renew Energy Global |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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