Correlation Between Energizer Holdings and Expion360
Can any of the company-specific risk be diversified away by investing in both Energizer Holdings 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 Energizer Holdings and Expion360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energizer Holdings and Expion360, you can compare the effects of market volatilities on Energizer Holdings 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 Energizer Holdings with a short position of Expion360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energizer Holdings and Expion360.
Diversification Opportunities for Energizer Holdings and Expion360
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Energizer and Expion360 is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Energizer Holdings and Expion360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expion360 and Energizer Holdings 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 Energizer Holdings 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 Energizer Holdings i.e., Energizer Holdings and Expion360 go up and down completely randomly.
Pair Corralation between Energizer Holdings and Expion360
Considering the 90-day investment horizon Energizer Holdings is expected to generate 0.19 times more return on investment than Expion360. However, Energizer Holdings is 5.39 times less risky than Expion360. It trades about 0.01 of its potential returns per unit of risk. Expion360 is currently generating about -0.06 per unit of risk. If you would invest 3,491 in Energizer Holdings on October 24, 2024 and sell it today you would lose (43.50) from holding Energizer Holdings or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energizer Holdings vs. Expion360
Performance |
| Timeline |
| Energizer Holdings |
| Expion360 |
Energizer Holdings and Expion360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energizer Holdings and Expion360
The main advantage of trading using opposite Energizer Holdings and Expion360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energizer Holdings 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.| Energizer Holdings vs. Acuity Brands | Energizer Holdings vs. Espey Mfg Electronics | Energizer Holdings vs. Preformed Line Products | Energizer Holdings vs. Kimball Electronics |
| Expion360 vs. Enovix Corp | Expion360 vs. Amprius Technologies | Expion360 vs. FREYR Battery SA | Expion360 vs. Eos Energy Enterprises |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |