Correlation Between Eos Energy and Exactus

Can any of the company-specific risk be diversified away by investing in both Eos Energy and Exactus 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 Eos Energy and Exactus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eos Energy Enterprises and Exactus, you can compare the effects of market volatilities on Eos Energy and Exactus 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 Eos Energy with a short position of Exactus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Exactus.

Diversification Opportunities for Eos Energy and Exactus

0.0

Correlation Coefficient

Eos Energy  Exactus

Pay attention - limited upside

The 3 months correlation between Eos and Exactus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Exactus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exactus and Eos Energy 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 Eos Energy Enterprises are associated (or correlated) with Exactus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exactus has no effect on the direction of Eos Energy i.e., Eos Energy and Exactus go up and down completely randomly.

Pair Corralation between Eos Energy and Exactus

If you would invest (100.00) in Exactus on January 19, 2024 and sell it today you would earn a total of  100.00  from holding Exactus or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eos Energy Enterprises  vs.  Exactus

Eos Energy Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eos Energy Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Eos Energy is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Exactus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exactus has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Exactus is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Eos Energy and Exactus

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

The idea behind Eos Energy Enterprises and Exactus 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.