Correlation Between Ormat Technologies and Energix Renewable
Can any of the company-specific risk be diversified away by investing in both Ormat Technologies and Energix Renewable 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 Ormat Technologies and Energix Renewable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ormat Technologies and Energix Renewable Energies, you can compare the effects of market volatilities on Ormat Technologies and Energix Renewable 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 Ormat Technologies with a short position of Energix Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ormat Technologies and Energix Renewable.
Diversification Opportunities for Ormat Technologies and Energix Renewable
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ormat and Energix is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ormat Technologies and Energix Renewable Energies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energix Renewable and Ormat Technologies 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 Ormat Technologies are associated (or correlated) with Energix Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energix Renewable has no effect on the direction of Ormat Technologies i.e., Ormat Technologies and Energix Renewable go up and down completely randomly.
Pair Corralation between Ormat Technologies and Energix Renewable
Assuming the 90 days trading horizon Ormat Technologies is expected to generate 0.52 times more return on investment than Energix Renewable. However, Ormat Technologies is 1.94 times less risky than Energix Renewable. It trades about 0.11 of its potential returns per unit of risk. Energix Renewable Energies is currently generating about -0.13 per unit of risk. If you would invest 2,854,846 in Ormat Technologies on August 29, 2024 and sell it today you would earn a total of 109,154 from holding Ormat Technologies or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ormat Technologies vs. Energix Renewable Energies
Performance |
| Timeline |
| Ormat Technologies |
| Energix Renewable |
Ormat Technologies and Energix Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ormat Technologies and Energix Renewable
The main advantage of trading using opposite Ormat Technologies and Energix Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ormat Technologies position performs unexpectedly, Energix Renewable 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 Energix Renewable will offset losses from the drop in Energix Renewable's long position.| Ormat Technologies vs. Elbit Systems | Ormat Technologies vs. Nice | Ormat Technologies vs. Tower Semiconductor | Ormat Technologies vs. Nova |
| Energix Renewable vs. Enlight Renewable Energy | Energix Renewable vs. Doral Group Renewable | Energix Renewable vs. Alony Hetz Properties | Energix Renewable vs. Elbit Systems |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |