Correlation Between Electra Battery and Guru Organic
Can any of the company-specific risk be diversified away by investing in both Electra Battery and Guru Organic 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 Electra Battery and Guru Organic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electra Battery Materials and Guru Organic Energy, you can compare the effects of market volatilities on Electra Battery and Guru Organic 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 Electra Battery with a short position of Guru Organic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electra Battery and Guru Organic.
Diversification Opportunities for Electra Battery and Guru Organic
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Electra and Guru is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Electra Battery Materials and Guru Organic Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guru Organic Energy and Electra Battery 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 Electra Battery Materials are associated (or correlated) with Guru Organic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guru Organic Energy has no effect on the direction of Electra Battery i.e., Electra Battery and Guru Organic go up and down completely randomly.
Pair Corralation between Electra Battery and Guru Organic
Assuming the 90 days trading horizon Electra Battery Materials is expected to under-perform the Guru Organic. But the stock apears to be less risky and, when comparing its historical volatility, Electra Battery Materials is 1.73 times less risky than Guru Organic. The stock trades about -0.1 of its potential returns per unit of risk. The Guru Organic Energy is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Guru Organic Energy on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Guru Organic Energy or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electra Battery Materials vs. Guru Organic Energy
Performance |
| Timeline |
| Electra Battery Materials |
| Guru Organic Energy |
Electra Battery and Guru Organic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electra Battery and Guru Organic
The main advantage of trading using opposite Electra Battery and Guru Organic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electra Battery position performs unexpectedly, Guru Organic 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 Guru Organic will offset losses from the drop in Guru Organic's long position.| Electra Battery vs. Frontier Lithium | Electra Battery vs. Electra Battery Materials | Electra Battery vs. E3 Lithium | Electra Battery vs. Canada Nickel |
| Guru Organic vs. Haivision Systems | Guru Organic vs. Lion Electric Corp | Guru Organic vs. BRP Inc | Guru Organic vs. iShares Canadian HYBrid |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |