Correlation Between Wallbox NV and Wrap Technologies

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

By analyzing existing cross correlation between Wallbox NV and Wrap Technologies, you can compare the effects of market volatilities on Wallbox NV and Wrap Technologies 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 Wrap Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wallbox NV and Wrap Technologies.

Diversification Opportunities for Wallbox NV and Wrap Technologies

0.55

Correlation Coefficient

Wallbox NV  Wrap Technologies

Very weak diversification

The 3 months correlation between Wallbox and Wrap is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Wallbox NV and Wrap Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wrap Technologies 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 Wrap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wrap Technologies has no effect on the direction of Wallbox NV i.e., Wallbox NV and Wrap Technologies go up and down completely randomly.

Pair Corralation between Wallbox NV and Wrap Technologies

Considering the 90-day investment horizon Wallbox NV is expected to generate 12.66 times less return on investment than Wrap Technologies. But when comparing it to its historical volatility, Wallbox NV is 1.29 times less risky than Wrap Technologies. It trades about 0.02 of its potential returns per unit of risk. Wrap Technologies is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  132.00  in Wrap Technologies on August 3, 2025 and sell it today you would earn a total of  149.00  from holding Wrap Technologies or generate 112.88% return on investment over 90 days.

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

Wallbox NV  vs.  Wrap Technologies

Wallbox NV

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wallbox NV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental drivers, Wallbox NV may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Wrap Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wrap Technologies are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Wrap Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wallbox NV and Wrap Technologies

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

The idea behind Wallbox NV and Wrap Technologies 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.