Correlation Between Electrovaya Common and Hubbell
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and Hubbell 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 Hubbell 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 Hubbell, you can compare the effects of market volatilities on Electrovaya Common and Hubbell 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 Hubbell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Hubbell.
Diversification Opportunities for Electrovaya Common and Hubbell
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Electrovaya and Hubbell is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Hubbell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubbell 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 Hubbell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubbell has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Hubbell go up and down completely randomly.
Pair Corralation between Electrovaya Common and Hubbell
Given the investment horizon of 90 days Electrovaya Common Shares is expected to under-perform the Hubbell. In addition to that, Electrovaya Common is 2.05 times more volatile than Hubbell. It trades about -0.01 of its total potential returns per unit of risk. Hubbell is currently generating about 0.08 per unit of volatility. If you would invest 22,356 in Hubbell on October 7, 2024 and sell it today you would earn a total of 20,740 from holding Hubbell or generate 92.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrovaya Common Shares vs. Hubbell
Performance |
| Timeline |
| Electrovaya Common Shares |
| Hubbell |
Electrovaya Common and Hubbell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Hubbell
The main advantage of trading using opposite Electrovaya Common and Hubbell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, Hubbell 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 Hubbell will offset losses from the drop in Hubbell's long position.| Electrovaya Common vs. First Watch Restaurant | Electrovaya Common vs. JetBlue Airways Corp | Electrovaya Common vs. LATAM Airlines Group | Electrovaya Common vs. flyExclusive, |
| Hubbell vs. Advanced Energy Industries | Hubbell vs. Enersys | Hubbell vs. Acuity Brands | Hubbell vs. Kimball Electronics |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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