Correlation Between Safe Pro and ESS Tech
Can any of the company-specific risk be diversified away by investing in both Safe Pro and ESS Tech 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 Safe Pro and ESS Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe Pro Group and ESS Tech, you can compare the effects of market volatilities on Safe Pro and ESS Tech 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 Safe Pro with a short position of ESS Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe Pro and ESS Tech.
Diversification Opportunities for Safe Pro and ESS Tech
Modest diversification
The 3 months correlation between Safe and ESS is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Safe Pro Group and ESS Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESS Tech and Safe Pro 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 Safe Pro Group are associated (or correlated) with ESS Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESS Tech has no effect on the direction of Safe Pro i.e., Safe Pro and ESS Tech go up and down completely randomly.
Pair Corralation between Safe Pro and ESS Tech
Given the investment horizon of 90 days Safe Pro is expected to generate 2.24 times less return on investment than ESS Tech. But when comparing it to its historical volatility, Safe Pro Group is 2.98 times less risky than ESS Tech. It trades about 0.15 of its potential returns per unit of risk. ESS Tech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 221.00 in ESS Tech on July 24, 2025 and sell it today you would earn a total of 212.00 from holding ESS Tech or generate 95.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe Pro Group vs. ESS Tech
Performance |
| Timeline |
| Safe Pro Group |
| ESS Tech |
Safe Pro and ESS Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe Pro and ESS Tech
The main advantage of trading using opposite Safe Pro and ESS Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe Pro position performs unexpectedly, ESS Tech 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 ESS Tech will offset losses from the drop in ESS Tech's long position.| Safe Pro vs. HUHUTECH International Group | Safe Pro vs. Hurco Companies | Safe Pro vs. Odyssey Marine Exploration | Safe Pro vs. Optex Systems Holdings, |
| ESS Tech vs. Ocean Power Technologies | ESS Tech vs. Chardan NexTech Acquisition | ESS Tech vs. CBAK Energy Technology | ESS Tech vs. Espey Mfg Electronics |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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