Correlation Between Scisparc and Expion360

Can any of the company-specific risk be diversified away by investing in both Scisparc and Expion360 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 Scisparc and Expion360 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Scisparc and Expion360, you can compare the effects of market volatilities on Scisparc and Expion360 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 Scisparc with a short position of Expion360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scisparc and Expion360.

Diversification Opportunities for Scisparc and Expion360

0.28

Correlation Coefficient

Scisparc  Expion360

Modest diversification

The 3 months correlation between Scisparc and Expion360 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Scisparc and Expion360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expion360 and Scisparc 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 Scisparc are associated (or correlated) with Expion360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expion360 has no effect on the direction of Scisparc i.e., Scisparc and Expion360 go up and down completely randomly.

Pair Corralation between Scisparc and Expion360

Given the investment horizon of 90 days Scisparc is expected to under-perform the Expion360. But the stock apears to be less risky and, when comparing its historical volatility, Scisparc is 2.09 times less risky than Expion360. The stock trades about -0.09 of its potential returns per unit of risk. The Expion360 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  101.00  in Expion360 on May 9, 2025 and sell it today you would earn a total of  11.00  from holding Expion360 or generate 10.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Scisparc  vs.  Expion360

Scisparc

Risk-Adjusted Performance

Weakest

Over the last 90 days Scisparc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Expion360

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Expion360 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Expion360 displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Scisparc and Expion360

The main advantage of trading using opposite Scisparc and Expion360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scisparc position performs unexpectedly, Expion360 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 Expion360 will offset losses from the drop in Expion360's long position.

The idea behind Scisparc and Expion360 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.