Correlation Between Wallbox NV and Eshallgo

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

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

Diversification Opportunities for Wallbox NV and Eshallgo

0.5

Correlation Coefficient

Wallbox NV  Eshallgo

Very weak diversification

The 3 months correlation between Wallbox and Eshallgo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Wallbox NV and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and Wallbox NV 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 Wallbox NV are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Wallbox NV i.e., Wallbox NV and Eshallgo go up and down completely randomly.

Pair Corralation between Wallbox NV and Eshallgo

Considering the 90-day investment horizon Wallbox NV is expected to generate 0.76 times more return on investment than Eshallgo. However, Wallbox NV is 1.32 times less risky than Eshallgo. It trades about -0.07 of its potential returns per unit of risk. Eshallgo Class A is currently generating about -0.13 per unit of risk. If you would invest  67.00  in Wallbox NV on December 3, 2024 and sell it today you would lose (26.24) from holding Wallbox NV or give up 39.16% of portfolio value over 90 days.

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

Wallbox NV  vs.  Eshallgo Class A

Wallbox NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wallbox NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Eshallgo Class A

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eshallgo Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Wallbox NV and Eshallgo

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

The idea behind Wallbox NV and Eshallgo Class A 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.