Correlation Between BrightView Holdings and Energy Recovery

Can any of the company-specific risk be diversified away by investing in both BrightView Holdings and Energy Recovery 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 BrightView Holdings and Energy Recovery into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BrightView Holdings and Energy Recovery, you can compare the effects of market volatilities on BrightView Holdings and Energy Recovery 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 BrightView Holdings with a short position of Energy Recovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrightView Holdings and Energy Recovery.

Diversification Opportunities for BrightView Holdings and Energy Recovery

-0.82

Correlation Coefficient

BrightView Holdings  Energy Recovery

Pay attention - limited upside

The 3 months correlation between BrightView and Energy is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding BrightView Holdings and Energy Recovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Recovery and BrightView 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 BrightView Holdings are associated (or correlated) with Energy Recovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Recovery has no effect on the direction of BrightView Holdings i.e., BrightView Holdings and Energy Recovery go up and down completely randomly.

Pair Corralation between BrightView Holdings and Energy Recovery

Allowing for the 90-day total investment horizon BrightView Holdings is expected to under-perform the Energy Recovery. But the stock apears to be less risky and, when comparing its historical volatility, BrightView Holdings is 1.13 times less risky than Energy Recovery. The stock trades about -0.17 of its potential returns per unit of risk. The Energy Recovery is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,367  in Energy Recovery on July 22, 2025 and sell it today you would earn a total of  309.00  from holding Energy Recovery or generate 22.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

BrightView Holdings  vs.  Energy Recovery

BrightView Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days BrightView Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in November 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Energy Recovery

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Recovery are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, Energy Recovery demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BrightView Holdings and Energy Recovery

The main advantage of trading using opposite BrightView Holdings and Energy Recovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrightView Holdings position performs unexpectedly, Energy Recovery 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 Energy Recovery will offset losses from the drop in Energy Recovery's long position.

The idea behind BrightView Holdings and Energy Recovery pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.