Correlation Between Pinterest and Expand Energy
Can any of the company-specific risk be diversified away by investing in both Pinterest and Expand Energy 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 Pinterest and Expand Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinterest and Expand Energy, you can compare the effects of market volatilities on Pinterest and Expand Energy 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 Pinterest with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and Expand Energy.
Diversification Opportunities for Pinterest and Expand Energy
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pinterest and Expand is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and Pinterest 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 Pinterest are associated (or correlated) with Expand Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expand Energy has no effect on the direction of Pinterest i.e., Pinterest and Expand Energy go up and down completely randomly.
Pair Corralation between Pinterest and Expand Energy
Given the investment horizon of 90 days Pinterest is expected to under-perform the Expand Energy. In addition to that, Pinterest is 2.23 times more volatile than Expand Energy. It trades about -0.07 of its total potential returns per unit of risk. Expand Energy is currently generating about -0.13 per unit of volatility. If you would invest 9,951 in Expand Energy on June 6, 2025 and sell it today you would lose (351.00) from holding Expand Energy or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pinterest vs. Expand Energy
Performance |
| Timeline |
| Expand Energy |
Pinterest and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinterest and Expand Energy
The main advantage of trading using opposite Pinterest and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest position performs unexpectedly, Expand Energy 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 Expand Energy will offset losses from the drop in Expand Energy's long position.| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
| Expand Energy vs. Brunswick | Expand Energy vs. Serve Robotics Common | Expand Energy vs. BRP Inc | Expand Energy vs. BorgWarner |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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