Correlation Between Enertime SAS and Voltalia

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

By analyzing existing cross correlation between Enertime SAS and Voltalia SA, you can compare the effects of market volatilities on Enertime SAS and Voltalia 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 Enertime SAS with a short position of Voltalia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enertime SAS and Voltalia.

Diversification Opportunities for Enertime SAS and Voltalia

0.0

Correlation Coefficient

Enertime SAS  Voltalia

Pay attention - limited upside

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

Pair Corralation between Enertime SAS and Voltalia

If you would invest  22.00  in Enertime SAS on September 25, 2024 and sell it today you would earn a total of  0.00  from holding Enertime SAS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	66.15%
Values	Daily Returns

Enertime SAS  vs.  Voltalia SA

Enertime SAS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Voltalia SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voltalia SA 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 January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Enertime SAS and Voltalia

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

The idea behind Enertime SAS and Voltalia SA 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.