Correlation Between Electrovaya Common and Life Time
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and Life Time 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 Life Time 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 Life Time Group, you can compare the effects of market volatilities on Electrovaya Common and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Life Time.
Diversification Opportunities for Electrovaya Common and Life Time
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Electrovaya and Life is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Life Time go up and down completely randomly.
Pair Corralation between Electrovaya Common and Life Time
Given the investment horizon of 90 days Electrovaya Common Shares is expected to generate 2.6 times more return on investment than Life Time. However, Electrovaya Common is 2.6 times more volatile than Life Time Group. It trades about 0.22 of its potential returns per unit of risk. Life Time Group is currently generating about 0.11 per unit of risk. If you would invest 212.00 in Electrovaya Common Shares on August 31, 2024 and sell it today you would earn a total of 48.00 from holding Electrovaya Common Shares or generate 22.64% 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. Life Time Group
Performance |
| Timeline |
| Electrovaya Common Shares |
| Life Time Group |
Electrovaya Common and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Life Time
The main advantage of trading using opposite Electrovaya Common and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| Electrovaya Common vs. Plug Power | Electrovaya Common vs. FREYR Battery SA | Electrovaya Common vs. FuelCell Energy | Electrovaya Common vs. Enovix Corp |
| Life Time vs. Bowlero Corp | Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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