Correlation Between Electrovaya Common and Cimpress
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and Cimpress 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 Cimpress 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 Cimpress NV, you can compare the effects of market volatilities on Electrovaya Common and Cimpress 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 Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Cimpress.
Diversification Opportunities for Electrovaya Common and Cimpress
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrovaya and Cimpress is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV 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 Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Cimpress go up and down completely randomly.
Pair Corralation between Electrovaya Common and Cimpress
Given the investment horizon of 90 days Electrovaya Common Shares is expected to generate 1.88 times more return on investment than Cimpress. However, Electrovaya Common is 1.88 times more volatile than Cimpress NV. It trades about 0.27 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.29 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. Cimpress NV
Performance |
| Timeline |
| Electrovaya Common Shares |
| Cimpress NV |
Electrovaya Common and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Cimpress
The main advantage of trading using opposite Electrovaya Common and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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