Correlation Between Electra Battery and Miivo Holdings
Can any of the company-specific risk be diversified away by investing in both Electra Battery and Miivo Holdings 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 Miivo Holdings 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 Miivo Holdings Corp, you can compare the effects of market volatilities on Electra Battery and Miivo Holdings 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 Miivo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electra Battery and Miivo Holdings.
Diversification Opportunities for Electra Battery and Miivo Holdings
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electra and Miivo is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Electra Battery Materials and Miivo Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miivo Holdings Corp 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 Miivo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miivo Holdings Corp has no effect on the direction of Electra Battery i.e., Electra Battery and Miivo Holdings go up and down completely randomly.
Pair Corralation between Electra Battery and Miivo Holdings
Assuming the 90 days trading horizon Electra Battery Materials is expected to under-perform the Miivo Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Electra Battery Materials is 2.08 times less risky than Miivo Holdings. The stock trades about -0.19 of its potential returns per unit of risk. The Miivo Holdings Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Miivo Holdings Corp on September 14, 2024 and sell it today you would earn a total of 7.00 from holding Miivo Holdings Corp or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electra Battery Materials vs. Miivo Holdings Corp
Performance |
| Timeline |
| Electra Battery Materials |
| Miivo Holdings Corp |
Electra Battery and Miivo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electra Battery and Miivo Holdings
The main advantage of trading using opposite Electra Battery and Miivo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electra Battery position performs unexpectedly, Miivo Holdings 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 Miivo Holdings will offset losses from the drop in Miivo Holdings' long position.| Electra Battery vs. Foraco International SA | Electra Battery vs. Geodrill Limited | Electra Battery vs. Major Drilling Group | Electra Battery vs. Bri Chem Corp |
| Miivo Holdings vs. Northstar Clean Technologies | Miivo Holdings vs. Xtract One Technologies | Miivo Holdings vs. Hemisphere Energy | Miivo Holdings vs. Electra Battery Materials |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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