Correlation Between Wallbox NV and Generation Essentials

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

By analyzing existing cross correlation between Wallbox NV and The Generation Essentials, you can compare the effects of market volatilities on Wallbox NV and Generation Essentials 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 Wallbox NV with a short position of Generation Essentials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wallbox NV and Generation Essentials.

Diversification Opportunities for Wallbox NV and Generation Essentials

0.84

Correlation Coefficient

Wallbox NV  Generation Essentials

Very poor diversification

The 3 months correlation between Wallbox and Generation is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Wallbox NV and The Generation Essentials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Generation Essentials and Wallbox NV 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 Wallbox NV are associated (or correlated) with Generation Essentials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Generation Essentials has no effect on the direction of Wallbox NV i.e., Wallbox NV and Generation Essentials go up and down completely randomly.

Pair Corralation between Wallbox NV and Generation Essentials

Considering the 90-day investment horizon Wallbox NV is expected to generate 0.35 times more return on investment than Generation Essentials. However, Wallbox NV is 2.83 times less risky than Generation Essentials. It trades about -0.06 of its potential returns per unit of risk. The Generation Essentials is currently generating about -0.04 per unit of risk. If you would invest  2,840  in Wallbox NV on October 9, 2025 and sell it today you would lose (2,533) from holding Wallbox NV or give up 89.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	30.16%
Values	Daily Returns

Wallbox NV  vs.  The Generation Essentials

Wallbox NV

Risk-Adjusted Performance

Weakest

Over the last 90 days Wallbox NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

The Generation Essentials

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in The Generation Essentials are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, Generation Essentials exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wallbox NV and Generation Essentials

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

The idea behind Wallbox NV and The Generation Essentials 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.