Correlation Between Powerstorm Holdings and Enovix Corp
Can any of the company-specific risk be diversified away by investing in both Powerstorm Holdings and Enovix Corp 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 Powerstorm Holdings and Enovix Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Powerstorm Holdings and Enovix Corp, you can compare the effects of market volatilities on Powerstorm Holdings and Enovix Corp 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 Powerstorm Holdings with a short position of Enovix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powerstorm Holdings and Enovix Corp.
Diversification Opportunities for Powerstorm Holdings and Enovix Corp
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Powerstorm and Enovix is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Powerstorm Holdings and Enovix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enovix Corp and Powerstorm Holdings 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 Powerstorm Holdings are associated (or correlated) with Enovix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enovix Corp has no effect on the direction of Powerstorm Holdings i.e., Powerstorm Holdings and Enovix Corp go up and down completely randomly.
Pair Corralation between Powerstorm Holdings and Enovix Corp
Given the investment horizon of 90 days Powerstorm Holdings is expected to generate 2.05 times more return on investment than Enovix Corp. However, Powerstorm Holdings is 2.05 times more volatile than Enovix Corp. It trades about 0.01 of its potential returns per unit of risk. Enovix Corp is currently generating about 0.03 per unit of risk. If you would invest 13.00 in Powerstorm Holdings on September 3, 2024 and sell it today you would lose (11.86) from holding Powerstorm Holdings or give up 91.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Powerstorm Holdings vs. Enovix Corp
Performance |
| Timeline |
| Powerstorm Holdings |
| Enovix Corp |
Powerstorm Holdings and Enovix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powerstorm Holdings and Enovix Corp
The main advantage of trading using opposite Powerstorm Holdings and Enovix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powerstorm Holdings position performs unexpectedly, Enovix Corp 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 Enovix Corp will offset losses from the drop in Enovix Corp's long position.| Powerstorm Holdings vs. Solid Power | Powerstorm Holdings vs. Plug Power | Powerstorm Holdings vs. FREYR Battery SA | Powerstorm Holdings vs. FuelCell Energy |
| Enovix Corp vs. ESS Tech | Enovix Corp vs. FREYR Battery SA | Enovix Corp vs. Microvast Holdings | Enovix Corp vs. Eos Energy Enterprises |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |