Correlation Between Electrovaya Common and Elong Power
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and Elong Power 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 Elong Power 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 Elong Power Holding, you can compare the effects of market volatilities on Electrovaya Common and Elong Power 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 Elong Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Elong Power.
Diversification Opportunities for Electrovaya Common and Elong Power
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Electrovaya and Elong is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Elong Power Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elong Power Holding 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 Elong Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elong Power Holding has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Elong Power go up and down completely randomly.
Pair Corralation between Electrovaya Common and Elong Power
Given the investment horizon of 90 days Electrovaya Common Shares is expected to generate 0.25 times more return on investment than Elong Power. However, Electrovaya Common Shares is 3.97 times less risky than Elong Power. It trades about 0.27 of its potential returns per unit of risk. Elong Power Holding is currently generating about -0.28 per unit of risk. If you would invest 206.00 in Electrovaya Common Shares on September 2, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrovaya Common Shares vs. Elong Power Holding
Performance |
| Timeline |
| Electrovaya Common Shares |
| Elong Power Holding |
Electrovaya Common and Elong Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Elong Power
The main advantage of trading using opposite Electrovaya Common and Elong Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, Elong Power 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 Elong Power will offset losses from the drop in Elong Power's long position.| Electrovaya Common vs. Corporacion America Airports | Electrovaya Common vs. Air Lease | Electrovaya Common vs. Finnair Oyj | Electrovaya Common vs. Jacobs Solutions |
| Elong Power vs. Bloom Energy Corp | Elong Power vs. Electrovaya Common Shares | Elong Power vs. Enovix Corp | Elong Power vs. Eos Energy Enterprises |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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