Correlation Between Eos Energy and Energizer Holdings
Can any of the company-specific risk be diversified away by investing in both Eos Energy and Energizer Holdings 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 Eos Energy and Energizer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eos Energy Enterprises and Energizer Holdings, you can compare the effects of market volatilities on Eos Energy and Energizer Holdings 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 Eos Energy with a short position of Energizer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Energizer Holdings.
Diversification Opportunities for Eos Energy and Energizer Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eos and Energizer is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Energizer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energizer Holdings and Eos Energy 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 Eos Energy Enterprises are associated (or correlated) with Energizer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energizer Holdings has no effect on the direction of Eos Energy i.e., Eos Energy and Energizer Holdings go up and down completely randomly.
Pair Corralation between Eos Energy and Energizer Holdings
Given the investment horizon of 90 days Eos Energy Enterprises is expected to generate 4.33 times more return on investment than Energizer Holdings. However, Eos Energy is 4.33 times more volatile than Energizer Holdings. It trades about 0.05 of its potential returns per unit of risk. Energizer Holdings is currently generating about -0.01 per unit of risk. If you would invest 238.00 in Eos Energy Enterprises on December 5, 2024 and sell it today you would earn a total of 156.00 from holding Eos Energy Enterprises or generate 65.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eos Energy Enterprises vs. Energizer Holdings
Performance |
Timeline |
Eos Energy Enterprises |
Energizer Holdings |
Eos Energy and Energizer Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eos Energy and Energizer Holdings
The main advantage of trading using opposite Eos Energy and Energizer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, Energizer Holdings 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 Energizer Holdings will offset losses from the drop in Energizer Holdings' long position.Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
Energizer Holdings vs. Acuity Brands | Energizer Holdings vs. Espey Mfg Electronics | Energizer Holdings vs. Preformed Line Products | Energizer Holdings vs. Kimball Electronics |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |