Correlation Between Fusion Fuel and Eos Energy
Can any of the company-specific risk be diversified away by investing in both Fusion Fuel and Eos 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 Fusion Fuel and Eos Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusion Fuel Green and Eos Energy Enterprises, you can compare the effects of market volatilities on Fusion Fuel and Eos 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 Fusion Fuel with a short position of Eos Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusion Fuel and Eos Energy.
Diversification Opportunities for Fusion Fuel and Eos Energy
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fusion and Eos is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Fuel Green and Eos Energy Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eos Energy Enterprises and Fusion Fuel 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 Fusion Fuel Green are associated (or correlated) with Eos Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eos Energy Enterprises has no effect on the direction of Fusion Fuel i.e., Fusion Fuel and Eos Energy go up and down completely randomly.
Pair Corralation between Fusion Fuel and Eos Energy
Given the investment horizon of 90 days Fusion Fuel Green is expected to under-perform the Eos Energy. But the stock apears to be less risky and, when comparing its historical volatility, Fusion Fuel Green is 5.4 times less risky than Eos Energy. The stock trades about -0.03 of its potential returns per unit of risk. The Eos Energy Enterprises is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Eos Energy Enterprises on August 30, 2025 and sell it today you would earn a total of 105.00 from holding Eos Energy Enterprises or generate 250.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Fusion Fuel Green vs. Eos Energy Enterprises
Performance |
| Timeline |
| Fusion Fuel Green |
| Eos Energy Enterprises |
Risk-Adjusted Performance
Good
Weak | Strong |
Fusion Fuel and Eos Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fusion Fuel and Eos Energy
The main advantage of trading using opposite Fusion Fuel and Eos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusion Fuel position performs unexpectedly, Eos 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 Eos Energy will offset losses from the drop in Eos Energy's long position.| Fusion Fuel vs. Genufood Energy | Fusion Fuel vs. NH Foods Ltd | Fusion Fuel vs. Takamatsu Construction Group | Fusion Fuel vs. BE Semiconductor Industries |
| Eos Energy vs. Konoike Transport CoLtd | Eos Energy vs. Knight Transportation | Eos Energy vs. Marten Transport | Eos Energy vs. Consolidated Sports Media |
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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