Correlation Between New Energy and Patriot Battery

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both New Energy and Patriot Battery 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 New Energy and Patriot Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Energy Metals and Patriot Battery Metals, you can compare the effects of market volatilities on New Energy and Patriot Battery 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 New Energy with a short position of Patriot Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Energy and Patriot Battery.

Diversification Opportunities for New Energy and Patriot Battery

NewPatriotDiversified AwayNewPatriotDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between New Energy and Patriot Battery

If you would invest  178.00  in Patriot Battery Metals on November 22, 2024 and sell it today you would earn a total of  14.00  from holding Patriot Battery Metals or generate 7.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

New Energy Metals  vs.  Patriot Battery Metals

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-10010
JavaScript chart by amCharts 3.21.15NRGYF PMETF
       Timeline  
New Energy Metals 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Over the last 90 days New Energy Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, New Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Patriot Battery Metals 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Patriot Battery Metals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Patriot Battery reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.822.22.42.6

New Energy and Patriot Battery Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-413.38-309.6-205.82-102.050.0105.35214.34323.32432.31541.29 0.0020.0040.0060.0080.0100.0120.014
JavaScript chart by amCharts 3.21.15NRGYF PMETF
       Returns  

Pair Trading with New Energy and Patriot Battery

The main advantage of trading using opposite New Energy and Patriot Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Energy position performs unexpectedly, Patriot Battery 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 Patriot Battery will offset losses from the drop in Patriot Battery's long position.
The idea behind New Energy Metals and Patriot Battery Metals 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Stocks Directory
Find actively traded stocks across global markets
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios