Correlation Between Exro Technologies and PyroGenesis Canada

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

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

Diversification Opportunities for Exro Technologies and PyroGenesis Canada

0.11

Correlation Coefficient

Exro Technologies  PyroGenesis Canada

Average diversification

The 3 months correlation between Exro and PyroGenesis is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Exro Technologies and PyroGenesis Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PyroGenesis Canada and Exro Technologies 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 Exro Technologies are associated (or correlated) with PyroGenesis Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PyroGenesis Canada has no effect on the direction of Exro Technologies i.e., Exro Technologies and PyroGenesis Canada go up and down completely randomly.

Pair Corralation between Exro Technologies and PyroGenesis Canada

Assuming the 90 days horizon Exro Technologies is expected to under-perform the PyroGenesis Canada. In addition to that, Exro Technologies is 1.62 times more volatile than PyroGenesis Canada. It trades about -0.15 of its total potential returns per unit of risk. PyroGenesis Canada is currently generating about -0.03 per unit of volatility. If you would invest  44.00  in PyroGenesis Canada on May 4, 2025 and sell it today you would lose (4.00) from holding PyroGenesis Canada or give up 9.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Exro Technologies  vs.  PyroGenesis Canada

Exro Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exro Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PyroGenesis Canada

Risk-Adjusted Performance

Very Weak

Over the last 90 days PyroGenesis Canada has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Exro Technologies and PyroGenesis Canada

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

The idea behind Exro Technologies and PyroGenesis Canada 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.