Correlation Between Expion360 and Flux Power
Can any of the company-specific risk be diversified away by investing in both Expion360 and Flux Power 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 Flux Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expion360 and Flux Power Holdings, you can compare the effects of market volatilities on Expion360 and Flux Power 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 Flux Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expion360 and Flux Power.
Diversification Opportunities for Expion360 and Flux Power
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Expion360 and Flux is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Expion360 and Flux Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flux Power Holdings 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 Flux Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flux Power Holdings has no effect on the direction of Expion360 i.e., Expion360 and Flux Power go up and down completely randomly.
Pair Corralation between Expion360 and Flux Power
Given the investment horizon of 90 days Expion360 is expected to under-perform the Flux Power. In addition to that, Expion360 is 1.31 times more volatile than Flux Power Holdings. It trades about -0.31 of its total potential returns per unit of risk. Flux Power Holdings is currently generating about -0.29 per unit of volatility. If you would invest 298.00 in Flux Power Holdings on August 28, 2024 and sell it today you would lose (97.00) from holding Flux Power Holdings or give up 32.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expion360 vs. Flux Power Holdings
Performance |
| Timeline |
| Expion360 |
| Flux Power Holdings |
Expion360 and Flux Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expion360 and Flux Power
The main advantage of trading using opposite Expion360 and Flux Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expion360 position performs unexpectedly, Flux Power 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 Flux Power will offset losses from the drop in Flux Power's long position.| Expion360 vs. Enovix Corp | Expion360 vs. Amprius Technologies | Expion360 vs. FREYR Battery SA | Expion360 vs. Eos Energy Enterprises |
| Flux Power vs. Bloom Energy Corp | Flux Power vs. Eos Energy Enterprises | Flux Power vs. Sunrise New Energy | Flux Power vs. GrafTech International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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