Correlation Between EzFill Holdings and Sphere 3D

Can any of the company-specific risk be diversified away by investing in both EzFill Holdings and Sphere 3D 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 EzFill Holdings and Sphere 3D into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EzFill Holdings and Sphere 3D Corp, you can compare the effects of market volatilities on EzFill Holdings and Sphere 3D 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 EzFill Holdings with a short position of Sphere 3D. Check out your portfolio center. Please also check ongoing floating volatility patterns of EzFill Holdings and Sphere 3D.

Diversification Opportunities for EzFill Holdings and Sphere 3D

-0.57

Correlation Coefficient

EzFill Holdings  Sphere 3D

Excellent diversification

The 3 months correlation between EzFill and Sphere is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding EzFill Holdings and Sphere 3D Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sphere 3D Corp and EzFill Holdings 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 EzFill Holdings are associated (or correlated) with Sphere 3D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sphere 3D Corp has no effect on the direction of EzFill Holdings i.e., EzFill Holdings and Sphere 3D go up and down completely randomly.

Pair Corralation between EzFill Holdings and Sphere 3D

Given the investment horizon of 90 days EzFill Holdings is expected to under-perform the Sphere 3D. But the stock apears to be less risky and, when comparing its historical volatility, EzFill Holdings is 1.55 times less risky than Sphere 3D. The stock trades about -0.08 of its potential returns per unit of risk. The Sphere 3D Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  82.00  in Sphere 3D Corp on September 2, 2024 and sell it today you would earn a total of  65.00  from holding Sphere 3D Corp or generate 79.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

EzFill Holdings  vs.  Sphere 3D Corp

EzFill Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EzFill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Sphere 3D Corp

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sphere 3D Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Sphere 3D showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EzFill Holdings and Sphere 3D

The main advantage of trading using opposite EzFill Holdings and Sphere 3D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EzFill Holdings position performs unexpectedly, Sphere 3D 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 Sphere 3D will offset losses from the drop in Sphere 3D's long position.

The idea behind EzFill Holdings and Sphere 3D Corp 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.