Correlation Between Brickability Group and Expion360

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Can any of the company-specific risk be diversified away by investing in both Brickability Group 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 Brickability Group and Expion360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brickability Group Plc and Expion360, you can compare the effects of market volatilities on Brickability Group 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 Brickability Group with a short position of Expion360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brickability Group and Expion360.

Diversification Opportunities for Brickability Group and Expion360

0.63
  Correlation Coefficient

Poor diversification

The 3 months correlation between Brickability and Expion360 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Brickability Group Plc and Expion360 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expion360 and Brickability Group 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 Brickability Group Plc 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 Brickability Group i.e., Brickability Group and Expion360 go up and down completely randomly.

Pair Corralation between Brickability Group and Expion360

Assuming the 90 days trading horizon Brickability Group is expected to generate 4.24 times less return on investment than Expion360. But when comparing it to its historical volatility, Brickability Group Plc is 4.45 times less risky than Expion360. It trades about 0.0 of its potential returns per unit of risk. Expion360 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  147.00  in Expion360 on September 11, 2025 and sell it today you would lose (24.00) from holding Expion360 or give up 16.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

Brickability Group Plc  vs.  Expion360

 Performance 
       Timeline  
Brickability Group Plc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Brickability Group Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Brickability Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Expion360 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Over the last 90 days Expion360 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Expion360 is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Brickability Group and Expion360 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Brickability Group and Expion360

The main advantage of trading using opposite Brickability Group and Expion360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brickability Group 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 Brickability Group Plc 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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