Correlation Between Eos Energy and Plug Power
Can any of the company-specific risk be diversified away by investing in both Eos Energy and Plug Power 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 Plug Power 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 Plug Power, you can compare the effects of market volatilities on Eos Energy and Plug Power 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 Plug Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Plug Power.
Diversification Opportunities for Eos Energy and Plug Power
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eos and Plug is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Plug Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plug Power 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 Plug Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plug Power has no effect on the direction of Eos Energy i.e., Eos Energy and Plug Power go up and down completely randomly.
Pair Corralation between Eos Energy and Plug Power
Given the investment horizon of 90 days Eos Energy Enterprises is expected to generate 0.79 times more return on investment than Plug Power. However, Eos Energy Enterprises is 1.26 times less risky than Plug Power. It trades about 0.26 of its potential returns per unit of risk. Plug Power is currently generating about 0.16 per unit of risk. If you would invest 646.00 in Eos Energy Enterprises on August 6, 2025 and sell it today you would earn a total of 916.00 from holding Eos Energy Enterprises or generate 141.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Plug Power
Performance |
| Timeline |
| Eos Energy Enterprises |
| Plug Power |
Eos Energy and Plug Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Plug Power
The main advantage of trading using opposite Eos Energy and Plug Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, Plug Power 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 Plug Power will offset losses from the drop in Plug Power's long position.| Eos Energy vs. Plug Power | Eos Energy vs. Enersys | Eos Energy vs. GrafTech International | Eos Energy vs. Spirit Aerosystems Holdings |
| Plug Power vs. Draganfly | Plug Power vs. Stardust Power | Plug Power vs. NeoVolta Common Stock | Plug Power vs. Mega Matrix Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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