Correlation Between Energizer Holdings and GrafTech International
Can any of the company-specific risk be diversified away by investing in both Energizer Holdings and GrafTech International 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 GrafTech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energizer Holdings and GrafTech International, you can compare the effects of market volatilities on Energizer Holdings and GrafTech International 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 GrafTech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energizer Holdings and GrafTech International.
Diversification Opportunities for Energizer Holdings and GrafTech International
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energizer and GrafTech is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Energizer Holdings and GrafTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrafTech International 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 GrafTech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrafTech International has no effect on the direction of Energizer Holdings i.e., Energizer Holdings and GrafTech International go up and down completely randomly.
Pair Corralation between Energizer Holdings and GrafTech International
Considering the 90-day investment horizon Energizer Holdings is expected to under-perform the GrafTech International. But the stock apears to be less risky and, when comparing its historical volatility, Energizer Holdings is 3.1 times less risky than GrafTech International. The stock trades about -0.08 of its potential returns per unit of risk. The GrafTech International is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 58.00 in GrafTech International on April 22, 2025 and sell it today you would earn a total of 74.00 from holding GrafTech International or generate 127.59% 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. GrafTech International
Performance |
| Timeline |
| Energizer Holdings |
| GrafTech International |
Energizer Holdings and GrafTech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energizer Holdings and GrafTech International
The main advantage of trading using opposite Energizer Holdings and GrafTech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energizer Holdings position performs unexpectedly, GrafTech International 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 GrafTech International will offset losses from the drop in GrafTech International's long position.| Energizer Holdings vs. Kimball Electronics | Energizer Holdings vs. Hayward Holdings | Energizer Holdings vs. Enersys | Energizer Holdings vs. Espey Mfg Electronics |
| GrafTech International vs. Energizer Holdings | GrafTech International vs. Kimball Electronics | GrafTech International vs. Espey Mfg Electronics | GrafTech International vs. Enersys |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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