Correlation Between Expion360 and Scisparc

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

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

Diversification Opportunities for Expion360 and Scisparc

0.49

Correlation Coefficient

Expion360  Scisparc

Very weak diversification

The 3 months correlation between Expion360 and Scisparc is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Expion360 and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc 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 Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of Expion360 i.e., Expion360 and Scisparc go up and down completely randomly.

Pair Corralation between Expion360 and Scisparc

Given the investment horizon of 90 days Expion360 is expected to generate 2.01 times more return on investment than Scisparc. However, Expion360 is 2.01 times more volatile than Scisparc. It trades about 0.09 of its potential returns per unit of risk. Scisparc is currently generating about -0.03 per unit of risk. If you would invest  83.00  in Expion360 on May 6, 2025 and sell it today you would earn a total of  30.00  from holding Expion360 or generate 36.14% return on investment over 90 days.

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

Expion360  vs.  Scisparc

Expion360

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Expion360 are ranked lower than 7 (%) 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.

Scisparc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Scisparc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Expion360 and Scisparc

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

The idea behind Expion360 and Scisparc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.