Correlation Between Eos Energy and Whole Earth
Can any of the company-specific risk be diversified away by investing in both Eos Energy and Whole Earth 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 Whole Earth 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 Whole Earth Brands, you can compare the effects of market volatilities on Eos Energy and Whole Earth 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 Whole Earth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eos Energy and Whole Earth.
Diversification Opportunities for Eos Energy and Whole Earth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eos and Whole is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eos Energy Enterprises and Whole Earth Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whole Earth Brands 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 Whole Earth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whole Earth Brands has no effect on the direction of Eos Energy i.e., Eos Energy and Whole Earth go up and down completely randomly.
Pair Corralation between Eos Energy and Whole Earth
If you would invest 37.00 in Eos Energy Enterprises on March 23, 2025 and sell it today you would earn a total of 1.00 from holding Eos Energy Enterprises or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eos Energy Enterprises vs. Whole Earth Brands
Performance |
| Timeline |
| Eos Energy Enterprises |
| Whole Earth Brands |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Eos Energy and Whole Earth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eos Energy and Whole Earth
The main advantage of trading using opposite Eos Energy and Whole Earth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eos Energy position performs unexpectedly, Whole Earth 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 Whole Earth will offset losses from the drop in Whole Earth's long position.The idea behind Eos Energy Enterprises and Whole Earth Brands 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.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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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