Correlation Between Expion360 and Enovix Corp
Can any of the company-specific risk be diversified away by investing in both Expion360 and Enovix Corp 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 Enovix Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expion360 and Enovix Corp, you can compare the effects of market volatilities on Expion360 and Enovix Corp 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 Enovix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expion360 and Enovix Corp.
Diversification Opportunities for Expion360 and Enovix Corp
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Expion360 and Enovix is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Expion360 and Enovix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enovix Corp 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 Enovix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enovix Corp has no effect on the direction of Expion360 i.e., Expion360 and Enovix Corp go up and down completely randomly.
Pair Corralation between Expion360 and Enovix Corp
Given the investment horizon of 90 days Expion360 is expected to under-perform the Enovix Corp. In addition to that, Expion360 is 1.38 times more volatile than Enovix Corp. It trades about -0.32 of its total potential returns per unit of risk. Enovix Corp is currently generating about -0.13 per unit of volatility. If you would invest 1,141 in Enovix Corp on August 28, 2024 and sell it today you would lose (188.00) from holding Enovix Corp or give up 16.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expion360 vs. Enovix Corp
Performance |
| Timeline |
| Expion360 |
| Enovix Corp |
Expion360 and Enovix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expion360 and Enovix Corp
The main advantage of trading using opposite Expion360 and Enovix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expion360 position performs unexpectedly, Enovix Corp 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 Enovix Corp will offset losses from the drop in Enovix Corp's long position.| Expion360 vs. FREYR Battery SA | Expion360 vs. Microvast Holdings | Expion360 vs. Chardan NexTech Acquisition | Expion360 vs. Solid Power |
| Enovix Corp vs. Bloom Energy Corp | Enovix Corp vs. Eos Energy Enterprises | Enovix Corp vs. Sunrise New Energy | Enovix Corp vs. Flux Power Holdings |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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