Correlation Between Eos Energy and Solid Power
Can any of the company-specific risk be diversified away by investing in both Eos Energy and Solid 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 Solid 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 Solid Power, you can compare the effects of market volatilities on Eos Energy and Solid 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 Solid Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Solid Power.
Diversification Opportunities for Eos Energy and Solid Power
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eos and Solid is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid 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 Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of Eos Energy i.e., Eos Energy and Solid Power go up and down completely randomly.
Pair Corralation between Eos Energy and Solid Power
Given the investment horizon of 90 days Eos Energy is expected to generate 1.96 times less return on investment than Solid Power. In addition to that, Eos Energy is 1.38 times more volatile than Solid Power. It trades about 0.11 of its total potential returns per unit of risk. Solid Power is currently generating about 0.3 per unit of volatility. If you would invest 93.00 in Solid Power on April 5, 2025 and sell it today you would earn a total of 154.00 from holding Solid Power or generate 165.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Solid Power
Performance |
| Timeline |
| Eos Energy Enterprises |
| Solid Power |
Eos Energy and Solid Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Solid Power
The main advantage of trading using opposite Eos Energy and Solid Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, Solid 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 Solid Power will offset losses from the drop in Solid Power's long position.| Eos Energy vs. Asure Software | Eos Energy vs. SkyWest | Eos Energy vs. Mesa Air Group | Eos Energy vs. Allegiant Travel |
| Solid Power vs. BBB Foods | Solid Power vs. Contextlogic | Solid Power vs. United Utilities Group | Solid Power vs. Academy Sports Outdoors |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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