Correlation Between FuelPositive Corp and Exro Technologies
Can any of the company-specific risk be diversified away by investing in both FuelPositive Corp and Exro 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 FuelPositive Corp and Exro Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelPositive Corp and Exro Technologies, you can compare the effects of market volatilities on FuelPositive Corp and Exro 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 FuelPositive Corp with a short position of Exro Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelPositive Corp and Exro Technologies.
Diversification Opportunities for FuelPositive Corp and Exro Technologies
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FuelPositive and Exro is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding FuelPositive Corp and Exro Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exro Technologies and FuelPositive Corp 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 FuelPositive Corp are associated (or correlated) with Exro Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exro Technologies has no effect on the direction of FuelPositive Corp i.e., FuelPositive Corp and Exro Technologies go up and down completely randomly.
Pair Corralation between FuelPositive Corp and Exro Technologies
Assuming the 90 days trading horizon FuelPositive Corp is expected to generate 4.24 times more return on investment than Exro Technologies. However, FuelPositive Corp is 4.24 times more volatile than Exro Technologies. It trades about 0.05 of its potential returns per unit of risk. Exro Technologies is currently generating about -0.3 per unit of risk. If you would invest 3.00 in FuelPositive Corp on November 4, 2024 and sell it today you would earn a total of 0.00 from holding FuelPositive Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
FuelPositive Corp vs. Exro Technologies
Performance |
| Timeline |
| FuelPositive Corp |
| Exro Technologies |
FuelPositive Corp and Exro Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelPositive Corp and Exro Technologies
The main advantage of trading using opposite FuelPositive Corp and Exro Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelPositive Corp position performs unexpectedly, Exro 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 Exro Technologies will offset losses from the drop in Exro Technologies' long position.| FuelPositive Corp vs. FuelPositive Corp | FuelPositive Corp vs. Eguana Technologies | FuelPositive Corp vs. Exro Technologies |
| Exro Technologies vs. Novonix Ltd ADR | Exro Technologies vs. Magnis Energy Technologies | Exro Technologies vs. Ilika plc | Exro Technologies vs. FuelPositive Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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