Correlation Between Quanergy Systems and ESCO Technologies
Can any of the company-specific risk be diversified away by investing in both Quanergy Systems and ESCO Technologies 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 Quanergy Systems and ESCO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanergy Systems and ESCO Technologies, you can compare the effects of market volatilities on Quanergy Systems and ESCO Technologies 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 Quanergy Systems with a short position of ESCO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanergy Systems and ESCO Technologies.
Diversification Opportunities for Quanergy Systems and ESCO Technologies
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Quanergy and ESCO is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Quanergy Systems and ESCO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESCO Technologies and Quanergy Systems 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 Quanergy Systems are associated (or correlated) with ESCO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESCO Technologies has no effect on the direction of Quanergy Systems i.e., Quanergy Systems and ESCO Technologies go up and down completely randomly.
Pair Corralation between Quanergy Systems and ESCO Technologies
If you would invest 13,153 in ESCO Technologies on November 3, 2024 and sell it today you would earn a total of 121.00 from holding ESCO Technologies or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Quanergy Systems vs. ESCO Technologies
Performance |
| Timeline |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ESCO Technologies |
Quanergy Systems and ESCO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanergy Systems and ESCO Technologies
The main advantage of trading using opposite Quanergy Systems and ESCO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanergy Systems position performs unexpectedly, ESCO Technologies 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 ESCO Technologies will offset losses from the drop in ESCO Technologies' long position.| Quanergy Systems vs. Asure Software | Quanergy Systems vs. Inhibrx | Quanergy Systems vs. I Mab | Quanergy Systems vs. Valneva SE ADR |
| ESCO Technologies vs. Novanta | ESCO Technologies vs. Sono Tek Corp | ESCO Technologies vs. Itron Inc | ESCO Technologies vs. Badger Meter |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |