Correlation Between Ouster and Ensurge Micropower
Can any of the company-specific risk be diversified away by investing in both Ouster and Ensurge Micropower 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 Ouster and Ensurge Micropower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ouster Inc and Ensurge Micropower ASA, you can compare the effects of market volatilities on Ouster and Ensurge Micropower 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 Ouster with a short position of Ensurge Micropower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ouster and Ensurge Micropower.
Diversification Opportunities for Ouster and Ensurge Micropower
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ouster and Ensurge is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ouster Inc and Ensurge Micropower ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensurge Micropower ASA and Ouster 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 Ouster Inc are associated (or correlated) with Ensurge Micropower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensurge Micropower ASA has no effect on the direction of Ouster i.e., Ouster and Ensurge Micropower go up and down completely randomly.
Pair Corralation between Ouster and Ensurge Micropower
Given the investment horizon of 90 days Ouster is expected to generate 8.8 times less return on investment than Ensurge Micropower. But when comparing it to its historical volatility, Ouster Inc is 4.55 times less risky than Ensurge Micropower. It trades about 0.03 of its potential returns per unit of risk. Ensurge Micropower ASA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Ensurge Micropower ASA on September 14, 2024 and sell it today you would lose (12.20) from holding Ensurge Micropower ASA or give up 58.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ouster Inc vs. Ensurge Micropower ASA
Performance |
| Timeline |
| Ouster Inc |
| Ensurge Micropower ASA |
Ouster and Ensurge Micropower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ouster and Ensurge Micropower
The main advantage of trading using opposite Ouster and Ensurge Micropower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ouster position performs unexpectedly, Ensurge Micropower 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 Ensurge Micropower will offset losses from the drop in Ensurge Micropower's long position.| Ouster vs. KULR Technology Group | Ouster vs. LightPath Technologies | Ouster vs. Daktronics | Ouster vs. Kopin |
| Ensurge Micropower vs. Ouster Inc | Ensurge Micropower vs. Kopin | Ensurge Micropower vs. Vicor | Ensurge Micropower vs. Fabrinet |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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