Correlation Between Energizer Holdings and CBAK Energy
Can any of the company-specific risk be diversified away by investing in both Energizer Holdings and CBAK Energy 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 Energizer Holdings and CBAK Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energizer Holdings and CBAK Energy Technology, you can compare the effects of market volatilities on Energizer Holdings and CBAK Energy 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 Energizer Holdings with a short position of CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energizer Holdings and CBAK Energy.
Diversification Opportunities for Energizer Holdings and CBAK Energy
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energizer and CBAK is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Energizer Holdings and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology and Energizer Holdings 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 Energizer Holdings are associated (or correlated) with CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of Energizer Holdings i.e., Energizer Holdings and CBAK Energy go up and down completely randomly.
Pair Corralation between Energizer Holdings and CBAK Energy
Considering the 90-day investment horizon Energizer Holdings is expected to generate 1.18 times more return on investment than CBAK Energy. However, Energizer Holdings is 1.18 times more volatile than CBAK Energy Technology. It trades about 0.12 of its potential returns per unit of risk. CBAK Energy Technology is currently generating about -0.05 per unit of risk. If you would invest 2,182 in Energizer Holdings on June 5, 2025 and sell it today you would earn a total of 649.00 from holding Energizer Holdings or generate 29.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energizer Holdings vs. CBAK Energy Technology
Performance |
| Timeline |
| Energizer Holdings |
| CBAK Energy Technology |
Energizer Holdings and CBAK Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energizer Holdings and CBAK Energy
The main advantage of trading using opposite Energizer Holdings and CBAK Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energizer Holdings position performs unexpectedly, CBAK Energy 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 CBAK Energy will offset losses from the drop in CBAK Energy's long position.| Energizer Holdings vs. Kimball Electronics | Energizer Holdings vs. Hayward Holdings | Energizer Holdings vs. Enersys | Energizer Holdings vs. Espey Mfg Electronics |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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