Correlation Between Electrovaya Common and SNDL
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and SNDL 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 SNDL 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 SNDL Inc, you can compare the effects of market volatilities on Electrovaya Common and SNDL 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 SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and SNDL.
Diversification Opportunities for Electrovaya Common and SNDL
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrovaya and SNDL is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and SNDL go up and down completely randomly.
Pair Corralation between Electrovaya Common and SNDL
Given the investment horizon of 90 days Electrovaya Common Shares is expected to under-perform the SNDL. But the stock apears to be less risky and, when comparing its historical volatility, Electrovaya Common Shares is 1.14 times less risky than SNDL. The stock trades about -0.01 of its potential returns per unit of risk. The SNDL Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 266.00 in SNDL Inc on August 28, 2024 and sell it today you would lose (64.00) from holding SNDL Inc or give up 24.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrovaya Common Shares vs. SNDL Inc
Performance |
| Timeline |
| Electrovaya Common Shares |
| SNDL Inc |
Electrovaya Common and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and SNDL
The main advantage of trading using opposite Electrovaya Common and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL's long position.| Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Eos Energy Enterprises | Electrovaya Common vs. Sunrise New Energy | Electrovaya Common vs. GrafTech International |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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