Correlation Between Expion360 and Erayak Power
Can any of the company-specific risk be diversified away by investing in both Expion360 and Erayak 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 Erayak Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expion360 and Erayak Power Solution, you can compare the effects of market volatilities on Expion360 and Erayak 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 Erayak Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expion360 and Erayak Power.
Diversification Opportunities for Expion360 and Erayak Power
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expion360 and Erayak is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Expion360 and Erayak Power Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erayak Power Solution 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 Erayak Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erayak Power Solution has no effect on the direction of Expion360 i.e., Expion360 and Erayak Power go up and down completely randomly.
Pair Corralation between Expion360 and Erayak Power
Given the investment horizon of 90 days Expion360 is expected to under-perform the Erayak Power. In addition to that, Expion360 is 1.93 times more volatile than Erayak Power Solution. It trades about -0.28 of its total potential returns per unit of risk. Erayak Power Solution is currently generating about 0.07 per unit of volatility. If you would invest 127.00 in Erayak Power Solution on November 28, 2024 and sell it today you would earn a total of 3.00 from holding Erayak Power Solution or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expion360 vs. Erayak Power Solution
Performance |
| Timeline |
| Expion360 |
| Erayak Power Solution |
Expion360 and Erayak Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expion360 and Erayak Power
The main advantage of trading using opposite Expion360 and Erayak Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expion360 position performs unexpectedly, Erayak 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 Erayak Power will offset losses from the drop in Erayak Power's long position.| Expion360 vs. Enovix Corp | Expion360 vs. Amprius Technologies | Expion360 vs. FREYR Battery SA | Expion360 vs. Eos Energy Enterprises |
| Erayak Power vs. NeoVolta Common Stock | Erayak Power vs. Hayward Holdings | Erayak Power vs. Advanced Energy Industries | Erayak Power vs. Espey Mfg Electronics |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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