Correlation Between EON SE and NEXE Innovations

Can any of the company-specific risk be diversified away by investing in both EON SE and NEXE Innovations 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 EON SE and NEXE Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for EON SE and NEXE Innovations

-0.1

Correlation Coefficient

EON SE  NEXE Innovations

Good diversification

The 3 months correlation between EON and NEXE is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding EON SE and NEXE Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXE Innovations and EON SE 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 EON SE are associated (or correlated) with NEXE Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXE Innovations has no effect on the direction of EON SE i.e., EON SE and NEXE Innovations go up and down completely randomly.

Pair Corralation between EON SE and NEXE Innovations

Assuming the 90 days horizon EON SE is expected to generate 0.54 times more return on investment than NEXE Innovations. However, EON SE is 1.85 times less risky than NEXE Innovations. It trades about 0.04 of its potential returns per unit of risk. NEXE Innovations is currently generating about 0.0 per unit of risk. If you would invest  1,725  in EON SE on May 7, 2025 and sell it today you would earn a total of  81.00  from holding EON SE or generate 4.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

EON SE  vs.  NEXE Innovations

EON SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EON SE are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking signals, EON SE may actually be approaching a critical reversion point that can send shares even higher in September 2025.

NEXE Innovations

Risk-Adjusted Performance

Very Weak

Over the last 90 days NEXE Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, NEXE Innovations is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with EON SE and NEXE Innovations

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

The idea behind EON SE and NEXE Innovations 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.