Correlation Between Energoaqua and Photon Energy

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

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

Diversification Opportunities for Energoaqua and Photon Energy

0.0

Correlation Coefficient

Energoaqua  Photon Energy

Pay attention - limited upside

The 3 months correlation between Energoaqua and Photon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Energoaqua as and Photon Energy NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photon Energy NV and Energoaqua 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 Energoaqua as are associated (or correlated) with Photon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photon Energy NV has no effect on the direction of Energoaqua i.e., Energoaqua and Photon Energy go up and down completely randomly.

Pair Corralation between Energoaqua and Photon Energy

If you would invest (100.00) in Energoaqua as on September 1, 2024 and sell it today you would earn a total of  100.00  from holding Energoaqua as or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Energoaqua as  vs.  Photon Energy NV

Energoaqua as

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Energoaqua as has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Energoaqua is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Photon Energy NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Photon Energy NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Energoaqua and Photon Energy

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

The idea behind Energoaqua as and Photon Energy NV 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.

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.