Correlation Between Energy Fuels and Centrus Energy
Can any of the company-specific risk be diversified away by investing in both Energy Fuels and Centrus Energy 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 Fuels and Centrus Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Fuels and Centrus Energy, you can compare the effects of market volatilities on Energy Fuels and Centrus Energy 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 Fuels with a short position of Centrus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Fuels and Centrus Energy.
Diversification Opportunities for Energy Fuels and Centrus Energy
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Energy and Centrus is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Energy Fuels and Centrus Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrus Energy and Energy Fuels 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 Fuels are associated (or correlated) with Centrus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrus Energy has no effect on the direction of Energy Fuels i.e., Energy Fuels and Centrus Energy go up and down completely randomly.
Pair Corralation between Energy Fuels and Centrus Energy
Given the investment horizon of 90 days Energy Fuels is expected to under-perform the Centrus Energy. But the stock apears to be less risky and, when comparing its historical volatility, Energy Fuels is 1.61 times less risky than Centrus Energy. The stock trades about -0.08 of its potential returns per unit of risk. The Centrus Energy is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,176 in Centrus Energy on November 8, 2024 and sell it today you would lose (995.00) from holding Centrus Energy or give up 10.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Fuels vs. Centrus Energy
Performance |
| Timeline |
| Energy Fuels |
| Centrus Energy |
Energy Fuels and Centrus Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Fuels and Centrus Energy
The main advantage of trading using opposite Energy Fuels and Centrus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Fuels position performs unexpectedly, Centrus Energy 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 Centrus Energy will offset losses from the drop in Centrus Energy's long position.| Energy Fuels vs. Uranium Energy Corp | Energy Fuels vs. Denison Mines Corp | Energy Fuels vs. Ur Energy | Energy Fuels vs. NexGen Energy |
| Centrus Energy vs. Denison Mines Corp | Centrus Energy vs. Energy Fuels | Centrus Energy vs. enCore Energy Corp | Centrus Energy vs. Ur Energy |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |