Correlation Between Sphere 3D and EzFill Holdings

Can any of the company-specific risk be diversified away by investing in both Sphere 3D and EzFill Holdings 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 Sphere 3D and EzFill Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sphere 3D Corp and EzFill Holdings, you can compare the effects of market volatilities on Sphere 3D and EzFill Holdings 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 Sphere 3D with a short position of EzFill Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere 3D and EzFill Holdings.

Diversification Opportunities for Sphere 3D and EzFill Holdings

-0.57

Correlation Coefficient

Sphere 3D  EzFill Holdings

Excellent diversification

The 3 months correlation between Sphere and EzFill is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sphere 3D Corp and EzFill Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EzFill Holdings and Sphere 3D 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 Sphere 3D Corp are associated (or correlated) with EzFill Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EzFill Holdings has no effect on the direction of Sphere 3D i.e., Sphere 3D and EzFill Holdings go up and down completely randomly.

Pair Corralation between Sphere 3D and EzFill Holdings

Considering the 90-day investment horizon Sphere 3D Corp is expected to generate 1.55 times more return on investment than EzFill Holdings. However, Sphere 3D is 1.55 times more volatile than EzFill Holdings. It trades about 0.17 of its potential returns per unit of risk. EzFill Holdings is currently generating about -0.08 per unit of risk. If you would invest  82.00  in Sphere 3D Corp on September 2, 2024 and sell it today you would earn a total of  65.00  from holding Sphere 3D Corp or generate 79.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Sphere 3D Corp  vs.  EzFill Holdings

Sphere 3D Corp

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sphere 3D Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Sphere 3D showed solid returns over the last few months and may actually be approaching a breakup point.

EzFill Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EzFill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Sphere 3D and EzFill Holdings

The main advantage of trading using opposite Sphere 3D and EzFill Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere 3D position performs unexpectedly, EzFill Holdings 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 EzFill Holdings will offset losses from the drop in EzFill Holdings' long position.

The idea behind Sphere 3D Corp and EzFill Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.