Correlation Between Acuity Brands and Electrovaya
Can any of the company-specific risk be diversified away by investing in both Acuity Brands and Electrovaya 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 Acuity Brands and Electrovaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acuity Brands and Electrovaya, you can compare the effects of market volatilities on Acuity Brands and Electrovaya 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 Acuity Brands with a short position of Electrovaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acuity Brands and Electrovaya.
Diversification Opportunities for Acuity Brands and Electrovaya
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acuity and Electrovaya is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Acuity Brands and Electrovaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya and Acuity Brands 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 Acuity Brands are associated (or correlated) with Electrovaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya has no effect on the direction of Acuity Brands i.e., Acuity Brands and Electrovaya go up and down completely randomly.
Pair Corralation between Acuity Brands and Electrovaya
If you would invest 24,597 in Acuity Brands on September 3, 2024 and sell it today you would earn a total of 7,472 from holding Acuity Brands or generate 30.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Acuity Brands vs. Electrovaya
Performance |
| Timeline |
| Acuity Brands |
| Electrovaya |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Acuity Brands and Electrovaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acuity Brands and Electrovaya
The main advantage of trading using opposite Acuity Brands and Electrovaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acuity Brands position performs unexpectedly, Electrovaya 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 Electrovaya will offset losses from the drop in Electrovaya's long position.| Acuity Brands vs. Bloom Energy Corp | Acuity Brands vs. Elong Power Holding | Acuity Brands vs. Enovix Corp | Acuity Brands vs. Sunrise New Energy |
| Electrovaya vs. Eguana Technologies | Electrovaya vs. Nano One Materials | Electrovaya vs. Solar Alliance Energy | Electrovaya vs. Exro Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world |