Correlation Between Energy Vault and Eos Energy

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

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

Diversification Opportunities for Energy Vault and Eos Energy

0.44

Correlation Coefficient

Energy Vault  Eos Energy

Very weak diversification

The 3 months correlation between Energy and Eos is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Energy Vault Holdings 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 Energy Vault 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 Energy Vault Holdings 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 Energy Vault i.e., Energy Vault and Eos Energy go up and down completely randomly.

Pair Corralation between Energy Vault and Eos Energy

Given the investment horizon of 90 days Energy Vault Holdings is expected to generate 1.24 times more return on investment than Eos Energy. However, Energy Vault is 1.24 times more volatile than Eos Energy Enterprises. It trades about 0.11 of its potential returns per unit of risk. Eos Energy Enterprises is currently generating about 0.02 per unit of risk. If you would invest  76.00  in Energy Vault Holdings on May 7, 2025 and sell it today you would earn a total of  31.00  from holding Energy Vault Holdings or generate 40.79% return on investment over 90 days.

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

Energy Vault Holdings  vs.  Eos Energy Enterprises

Energy Vault Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Vault Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Energy Vault showed solid returns over the last few months and may actually be approaching a breakup point.

Eos Energy Enterprises

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eos Energy Enterprises are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Eos Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Energy Vault and Eos Energy

The main advantage of trading using opposite Energy Vault and Eos Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Vault 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.

The idea behind Energy Vault Holdings and Eos Energy Enterprises 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.