Correlation Between Energy Vault and Wind Works
Can any of the company-specific risk be diversified away by investing in both Energy Vault and Wind Works 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 Wind Works 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 Wind Works Power, you can compare the effects of market volatilities on Energy Vault and Wind Works 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 Wind Works. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Vault and Wind Works.
Diversification Opportunities for Energy Vault and Wind Works
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energy and Wind is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Energy Vault Holdings and Wind Works Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wind Works Power 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 Wind Works. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wind Works Power has no effect on the direction of Energy Vault i.e., Energy Vault and Wind Works go up and down completely randomly.
Pair Corralation between Energy Vault and Wind Works
If you would invest 186.00 in Energy Vault Holdings on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Energy Vault Holdings or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Energy Vault Holdings vs. Wind Works Power
Performance |
| Timeline |
| Energy Vault Holdings |
| Wind Works Power |
Energy Vault and Wind Works Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Vault and Wind Works
The main advantage of trading using opposite Energy Vault and Wind Works positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Vault position performs unexpectedly, Wind Works 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 Wind Works will offset losses from the drop in Wind Works' long position.| Energy Vault vs. Altus Power | Energy Vault vs. Ormat Technologies | Energy Vault vs. Enlight Renewable Energy | Energy Vault vs. Advent Technologies Holdings |
| Wind Works vs. Alternus Energy Group | Wind Works vs. Mass Megawat Wind | Wind Works vs. Kansai Electric Power | Wind Works vs. VirExit Technologies |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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