Correlation Between Energy Focu and Imperium Group

Can any of the company-specific risk be diversified away by investing in both Energy Focu and Imperium Group 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 Focu and Imperium Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Energy Focu and Imperium Group Global, you can compare the effects of market volatilities on Energy Focu and Imperium Group 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 Focu with a short position of Imperium Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Focu and Imperium Group.

Diversification Opportunities for Energy Focu and Imperium Group

-0.62

Correlation Coefficient

Energy Focu  Imperium Group

Excellent diversification

The 3 months correlation between Energy and Imperium is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Energy Focu and Imperium Group Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imperium Group Global and Energy Focu 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 Focu are associated (or correlated) with Imperium Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imperium Group Global has no effect on the direction of Energy Focu i.e., Energy Focu and Imperium Group go up and down completely randomly.

Pair Corralation between Energy Focu and Imperium Group

Given the investment horizon of 90 days Energy Focu is expected to generate 1.98 times more return on investment than Imperium Group. However, Energy Focu is 1.98 times more volatile than Imperium Group Global. It trades about 0.09 of its potential returns per unit of risk. Imperium Group Global is currently generating about -0.19 per unit of risk. If you would invest  121.00  in Energy Focu on December 30, 2024 and sell it today you would earn a total of  64.00  from holding Energy Focu or generate 52.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Energy Focu  vs.  Imperium Group Global

Energy Focu

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Focu are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Energy Focu demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Imperium Group Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Imperium Group Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Energy Focu and Imperium Group

The main advantage of trading using opposite Energy Focu and Imperium Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Focu position performs unexpectedly, Imperium Group 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 Imperium Group will offset losses from the drop in Imperium Group's long position.

The idea behind Energy Focu and Imperium Group Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.