Correlation Between Expion360 and CBAK Energy
Can any of the company-specific risk be diversified away by investing in both Expion360 and CBAK Energy 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 Expion360 and CBAK Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expion360 and CBAK Energy Technology, you can compare the effects of market volatilities on Expion360 and CBAK Energy 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 Expion360 with a short position of CBAK Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expion360 and CBAK Energy.
Diversification Opportunities for Expion360 and CBAK Energy
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Expion360 and CBAK is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Expion360 and CBAK Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAK Energy Technology and Expion360 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 Expion360 are associated (or correlated) with CBAK Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAK Energy Technology has no effect on the direction of Expion360 i.e., Expion360 and CBAK Energy go up and down completely randomly.
Pair Corralation between Expion360 and CBAK Energy
Given the investment horizon of 90 days Expion360 is expected to under-perform the CBAK Energy. In addition to that, Expion360 is 2.01 times more volatile than CBAK Energy Technology. It trades about -0.31 of its total potential returns per unit of risk. CBAK Energy Technology is currently generating about -0.27 per unit of volatility. If you would invest 114.00 in CBAK Energy Technology on August 28, 2024 and sell it today you would lose (24.00) from holding CBAK Energy Technology or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expion360 vs. CBAK Energy Technology
Performance |
| Timeline |
| Expion360 |
| CBAK Energy Technology |
Expion360 and CBAK Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expion360 and CBAK Energy
The main advantage of trading using opposite Expion360 and CBAK Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expion360 position performs unexpectedly, CBAK Energy 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 CBAK Energy will offset losses from the drop in CBAK Energy's long position.| Expion360 vs. Enovix Corp | Expion360 vs. Amprius Technologies | Expion360 vs. FREYR Battery SA | Expion360 vs. Eos Energy Enterprises |
| CBAK Energy vs. Pioneer Power Solutions | CBAK Energy vs. Ocean Power Technologies | CBAK Energy vs. Ideal Power | CBAK Energy vs. Expion360 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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