Correlation Between Eos Energy and Expion360
Can any of the company-specific risk be diversified away by investing in both Eos Energy 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 Eos Energy and Expion360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eos Energy Enterprises and Expion360, you can compare the effects of market volatilities on Eos Energy 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 Eos Energy with a short position of Expion360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Expion360.
Diversification Opportunities for Eos Energy and Expion360
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eos and Expion360 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Expion360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expion360 and Eos Energy 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 Eos Energy Enterprises 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 Eos Energy i.e., Eos Energy and Expion360 go up and down completely randomly.
Pair Corralation between Eos Energy and Expion360
Given the investment horizon of 90 days Eos Energy Enterprises is expected to generate 0.94 times more return on investment than Expion360. However, Eos Energy Enterprises is 1.06 times less risky than Expion360. It trades about -0.11 of its potential returns per unit of risk. Expion360 is currently generating about -0.32 per unit of risk. If you would invest 345.00 in Eos Energy Enterprises on August 28, 2024 and sell it today you would lose (66.00) from holding Eos Energy Enterprises or give up 19.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Expion360
Performance |
| Timeline |
| Eos Energy Enterprises |
| Expion360 |
Eos Energy and Expion360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Expion360
The main advantage of trading using opposite Eos Energy and Expion360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy 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.| Eos Energy vs. FREYR Battery SA | Eos Energy vs. Microvast Holdings | Eos Energy vs. Chardan NexTech Acquisition | Eos Energy vs. Solid Power |
| Expion360 vs. FREYR Battery SA | Expion360 vs. Microvast Holdings | Expion360 vs. Chardan NexTech Acquisition | Expion360 vs. Solid Power |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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