Correlation Between Electrovaya Common and Old Dominion
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and Old Dominion 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 Old Dominion 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 Old Dominion Freight, you can compare the effects of market volatilities on Electrovaya Common and Old Dominion 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 Old Dominion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Old Dominion.
Diversification Opportunities for Electrovaya Common and Old Dominion
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Electrovaya and Old is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Old Dominion Freight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Dominion Freight 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 Old Dominion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Dominion Freight has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Old Dominion go up and down completely randomly.
Pair Corralation between Electrovaya Common and Old Dominion
Given the investment horizon of 90 days Electrovaya Common Shares is expected to generate 1.63 times more return on investment than Old Dominion. However, Electrovaya Common is 1.63 times more volatile than Old Dominion Freight. It trades about 0.27 of its potential returns per unit of risk. Old Dominion Freight is currently generating about 0.2 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrovaya Common Shares vs. Old Dominion Freight
Performance |
| Timeline |
| Electrovaya Common Shares |
| Old Dominion Freight |
Electrovaya Common and Old Dominion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Old Dominion
The main advantage of trading using opposite Electrovaya Common and Old Dominion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, Old Dominion 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 Old Dominion will offset losses from the drop in Old Dominion's long position.| Electrovaya Common vs. Corporacion America Airports | Electrovaya Common vs. Air Lease | Electrovaya Common vs. Finnair Oyj | Electrovaya Common vs. Jacobs Solutions |
| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |