Correlation Between Cayson Acquisition and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both Cayson Acquisition and Electrovaya Common 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 Cayson Acquisition and Electrovaya Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cayson Acquisition Corp and Electrovaya Common Shares, you can compare the effects of market volatilities on Cayson Acquisition and Electrovaya Common 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 Cayson Acquisition with a short position of Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cayson Acquisition and Electrovaya Common.
Diversification Opportunities for Cayson Acquisition and Electrovaya Common
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cayson and Electrovaya is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cayson Acquisition Corp and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares and Cayson Acquisition 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 Cayson Acquisition Corp are associated (or correlated) with Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of Cayson Acquisition i.e., Cayson Acquisition and Electrovaya Common go up and down completely randomly.
Pair Corralation between Cayson Acquisition and Electrovaya Common
Given the investment horizon of 90 days Cayson Acquisition is expected to generate 18.49 times less return on investment than Electrovaya Common. But when comparing it to its historical volatility, Cayson Acquisition Corp is 29.31 times less risky than Electrovaya Common. It trades about 0.19 of its potential returns per unit of risk. Electrovaya Common Shares is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Electrovaya Common Shares on August 24, 2024 and sell it today you would earn a total of 19.00 from holding Electrovaya Common Shares or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cayson Acquisition Corp vs. Electrovaya Common Shares
Performance |
| Timeline |
| Cayson Acquisition Corp |
| Electrovaya Common Shares |
Cayson Acquisition and Electrovaya Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cayson Acquisition and Electrovaya Common
The main advantage of trading using opposite Cayson Acquisition and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cayson Acquisition position performs unexpectedly, Electrovaya Common 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 Common will offset losses from the drop in Electrovaya Common's long position.| Cayson Acquisition vs. Electrovaya Common Shares | Cayson Acquisition vs. Teleflex Incorporated | Cayson Acquisition vs. Artisan Partners Asset | Cayson Acquisition vs. PennantPark Floating Rate |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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