Correlation Between ESS Tech and Safe Pro
Can any of the company-specific risk be diversified away by investing in both ESS Tech and Safe Pro 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 ESS Tech and Safe Pro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESS Tech and Safe Pro Group, you can compare the effects of market volatilities on ESS Tech and Safe Pro 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 ESS Tech with a short position of Safe Pro. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESS Tech and Safe Pro.
Diversification Opportunities for ESS Tech and Safe Pro
Modest diversification
The 3 months correlation between ESS and Safe is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ESS Tech and Safe Pro Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Pro Group and ESS Tech 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 ESS Tech are associated (or correlated) with Safe Pro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Pro Group has no effect on the direction of ESS Tech i.e., ESS Tech and Safe Pro go up and down completely randomly.
Pair Corralation between ESS Tech and Safe Pro
Considering the 90-day investment horizon ESS Tech is expected to generate 3.02 times more return on investment than Safe Pro. However, ESS Tech is 3.02 times more volatile than Safe Pro Group. It trades about 0.12 of its potential returns per unit of risk. Safe Pro Group is currently generating about 0.17 per unit of risk. If you would invest 249.00 in ESS Tech on July 23, 2025 and sell it today you would earn a total of 229.00 from holding ESS Tech or generate 91.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ESS Tech vs. Safe Pro Group
Performance |
| Timeline |
| ESS Tech |
| Safe Pro Group |
ESS Tech and Safe Pro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESS Tech and Safe Pro
The main advantage of trading using opposite ESS Tech and Safe Pro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESS Tech position performs unexpectedly, Safe Pro 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 Safe Pro will offset losses from the drop in Safe Pro's long position.| ESS Tech vs. Ocean Power Technologies | ESS Tech vs. Chardan NexTech Acquisition | ESS Tech vs. CBAK Energy Technology | ESS Tech vs. Espey Mfg Electronics |
| Safe Pro vs. HUHUTECH International Group | Safe Pro vs. Hurco Companies | Safe Pro vs. Odyssey Marine Exploration | Safe Pro vs. Optex Systems Holdings, |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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