Correlation Between Eos Energy and Fubotv

Can any of the company-specific risk be diversified away by investing in both Eos Energy and Fubotv 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 Fubotv 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 Fubotv Inc, you can compare the effects of market volatilities on Eos Energy and Fubotv 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 Fubotv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Fubotv.

Diversification Opportunities for Eos Energy and Fubotv

-0.05

Correlation Coefficient

Eos Energy  Fubotv

Good diversification

The 3 months correlation between Eos and Fubotv is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Fubotv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubotv Inc 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 Fubotv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubotv Inc has no effect on the direction of Eos Energy i.e., Eos Energy and Fubotv go up and down completely randomly.

Pair Corralation between Eos Energy and Fubotv

Assuming the 90 days horizon Eos Energy is expected to generate 1.34 times less return on investment than Fubotv. In addition to that, Eos Energy is 3.16 times more volatile than Fubotv Inc. It trades about 0.04 of its total potential returns per unit of risk. Fubotv Inc is currently generating about 0.17 per unit of volatility. If you would invest  252.00  in Fubotv Inc on May 4, 2025 and sell it today you would earn a total of  123.00  from holding Fubotv Inc or generate 48.81% return on investment over 90 days.

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

Eos Energy Enterprises  vs.  Fubotv Inc

Eos Energy Enterprises

Risk-Adjusted Performance

Insignificant

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

Fubotv Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fubotv Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent fundamental drivers, Fubotv displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eos Energy and Fubotv

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

The idea behind Eos Energy Enterprises and Fubotv Inc 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.