Correlation Between Expion360 and Atkore International
Can any of the company-specific risk be diversified away by investing in both Expion360 and Atkore International 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 Atkore International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expion360 and Atkore International Group, you can compare the effects of market volatilities on Expion360 and Atkore International 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 Atkore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expion360 and Atkore International.
Diversification Opportunities for Expion360 and Atkore International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Expion360 and Atkore is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Expion360 and Atkore International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atkore International 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 Atkore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atkore International has no effect on the direction of Expion360 i.e., Expion360 and Atkore International go up and down completely randomly.
Pair Corralation between Expion360 and Atkore International
Given the investment horizon of 90 days Expion360 is expected to under-perform the Atkore International. But the stock apears to be less risky and, when comparing its historical volatility, Expion360 is 1.32 times less risky than Atkore International. The stock trades about -0.38 of its potential returns per unit of risk. The Atkore International Group is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 7,937 in Atkore International Group on December 5, 2024 and sell it today you would lose (2,013) from holding Atkore International Group or give up 25.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Expion360 vs. Atkore International Group
Performance |
Timeline |
Expion360 |
Atkore International |
Expion360 and Atkore International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Expion360 and Atkore International
The main advantage of trading using opposite Expion360 and Atkore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expion360 position performs unexpectedly, Atkore International 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 Atkore International will offset losses from the drop in Atkore International's long position.Expion360 vs. Enovix Corp | Expion360 vs. Amprius Technologies | Expion360 vs. FREYR Battery SA | Expion360 vs. Eos Energy Enterprises |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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