Correlation Between Amprius Technologies and Energizer Holdings

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

Diversification Opportunities for Amprius Technologies and Energizer Holdings

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between Amprius and Energizer is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amprius Technologies and Energizer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energizer Holdings and Amprius Technologies 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 Amprius Technologies 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 Amprius Technologies i.e., Amprius Technologies and Energizer Holdings go up and down completely randomly.

Pair Corralation between Amprius Technologies and Energizer Holdings

Given the investment horizon of 90 days Amprius Technologies is expected to under-perform the Energizer Holdings. In addition to that, Amprius Technologies is 5.18 times more volatile than Energizer Holdings. It trades about -0.08 of its total potential returns per unit of risk. Energizer Holdings is currently generating about 0.03 per unit of volatility. If you would invest  2,898  in Energizer Holdings on March 24, 2024 and sell it today you would earn a total of  18.00  from holding Energizer Holdings or generate 0.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Amprius Technologies  vs.  Energizer Holdings

 Performance 
       Timeline  
Amprius Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amprius Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
Energizer Holdings 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Energizer Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Energizer Holdings is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Amprius Technologies and Energizer Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amprius Technologies and Energizer Holdings

The main advantage of trading using opposite Amprius Technologies and Energizer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amprius Technologies 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.
The idea behind Amprius Technologies and Energizer Holdings 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum