Correlation Between Electrovaya Common and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and Akanda Corp 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 Electrovaya Common and Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrovaya Common Shares and Akanda Corp, you can compare the effects of market volatilities on Electrovaya Common and Akanda Corp 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 Electrovaya Common with a short position of Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Akanda Corp.
Diversification Opportunities for Electrovaya Common and Akanda Corp
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrovaya and Akanda is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp and Electrovaya Common 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 Electrovaya Common Shares are associated (or correlated) with Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Akanda Corp go up and down completely randomly.
Pair Corralation between Electrovaya Common and Akanda Corp
Given the investment horizon of 90 days Electrovaya Common Shares is expected to generate 0.94 times more return on investment than Akanda Corp. However, Electrovaya Common Shares is 1.07 times less risky than Akanda Corp. It trades about 0.27 of its potential returns per unit of risk. Akanda Corp is currently generating about 0.21 per unit of risk. If you would invest 206.00 in Electrovaya Common Shares on September 1, 2024 and sell it today you would earn a total of 58.00 from holding Electrovaya Common Shares or generate 28.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrovaya Common Shares vs. Akanda Corp
Performance |
| Timeline |
| Electrovaya Common Shares |
| Akanda Corp |
Electrovaya Common and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Akanda Corp
The main advantage of trading using opposite Electrovaya Common and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Microvast Holdings | Electrovaya Common vs. Solid Power | Electrovaya Common vs. FREYR Battery SA |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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