Correlation Between Chardan NexTech and Expion360
Can any of the company-specific risk be diversified away by investing in both Chardan NexTech and Expion360 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 Chardan NexTech and Expion360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chardan NexTech Acquisition and Expion360, you can compare the effects of market volatilities on Chardan NexTech and Expion360 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 Chardan NexTech with a short position of Expion360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chardan NexTech and Expion360.
Diversification Opportunities for Chardan NexTech and Expion360
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chardan and Expion360 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Chardan NexTech Acquisition and Expion360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expion360 and Chardan NexTech 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 Chardan NexTech Acquisition are associated (or correlated) with Expion360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expion360 has no effect on the direction of Chardan NexTech i.e., Chardan NexTech and Expion360 go up and down completely randomly.
Pair Corralation between Chardan NexTech and Expion360
Given the investment horizon of 90 days Chardan NexTech Acquisition is expected to generate 0.58 times more return on investment than Expion360. However, Chardan NexTech Acquisition is 1.72 times less risky than Expion360. It trades about 0.0 of its potential returns per unit of risk. Expion360 is currently generating about -0.12 per unit of risk. If you would invest 67.00 in Chardan NexTech Acquisition on August 24, 2024 and sell it today you would lose (30.00) from holding Chardan NexTech Acquisition or give up 44.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chardan NexTech Acquisition vs. Expion360
Performance |
| Timeline |
| Chardan NexTech Acqu |
| Expion360 |
Chardan NexTech and Expion360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chardan NexTech and Expion360
The main advantage of trading using opposite Chardan NexTech and Expion360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chardan NexTech position performs unexpectedly, Expion360 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 Expion360 will offset losses from the drop in Expion360's long position.| Chardan NexTech vs. Polar Power | Chardan NexTech vs. Eos Energy Enterprises | Chardan NexTech vs. Sunrise New Energy | Chardan NexTech vs. AFC Energy plc |
| Expion360 vs. Plug Power | Expion360 vs. Solid Power | Expion360 vs. CBAK Energy Technology | Expion360 vs. FuelCell Energy |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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