Correlation Between Spartan Delta and Expand Energy
Can any of the company-specific risk be diversified away by investing in both Spartan Delta 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 Spartan Delta and Expand Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spartan Delta Corp and Expand Energy, you can compare the effects of market volatilities on Spartan Delta 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 Spartan Delta with a short position of Expand Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spartan Delta and Expand Energy.
Diversification Opportunities for Spartan Delta and Expand Energy
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Spartan and Expand is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Spartan Delta Corp and Expand Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expand Energy and Spartan Delta 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 Spartan Delta Corp 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 Spartan Delta i.e., Spartan Delta and Expand Energy go up and down completely randomly.
Pair Corralation between Spartan Delta and Expand Energy
Assuming the 90 days trading horizon Spartan Delta Corp is expected to generate 1.24 times more return on investment than Expand Energy. However, Spartan Delta is 1.24 times more volatile than Expand Energy. It trades about 0.31 of its potential returns per unit of risk. Expand Energy is currently generating about 0.19 per unit of risk. If you would invest 487.00 in Spartan Delta Corp on September 2, 2025 and sell it today you would earn a total of 270.00 from holding Spartan Delta Corp or generate 55.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Spartan Delta Corp vs. Expand Energy
Performance |
| Timeline |
| Spartan Delta Corp |
| Expand Energy |
Spartan Delta and Expand Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spartan Delta and Expand Energy
The main advantage of trading using opposite Spartan Delta and Expand Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spartan Delta 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.| Spartan Delta vs. Rocky Mountain Liquor | Spartan Delta vs. Enduro Metals Corp | Spartan Delta vs. Medical Facilities | Spartan Delta vs. Major Drilling Group |
| Expand Energy vs. Telephone and Data | Expand Energy vs. Globe Trade Centre | Expand Energy vs. H2O Retailing | Expand Energy vs. Indutrade AB |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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