Correlation Between Electrovaya Common and Spectaire Holdings
Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and Spectaire Holdings 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 Spectaire Holdings 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 Spectaire Holdings, you can compare the effects of market volatilities on Electrovaya Common and Spectaire Holdings 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 Spectaire Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Spectaire Holdings.
Diversification Opportunities for Electrovaya Common and Spectaire Holdings
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Electrovaya and Spectaire is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Spectaire Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectaire Holdings 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 Spectaire Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectaire Holdings has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Spectaire Holdings go up and down completely randomly.
Pair Corralation between Electrovaya Common and Spectaire Holdings
Given the investment horizon of 90 days Electrovaya Common Shares is expected to generate 0.45 times more return on investment than Spectaire Holdings. However, Electrovaya Common Shares is 2.23 times less risky than Spectaire Holdings. It trades about 0.0 of its potential returns per unit of risk. Spectaire Holdings is currently generating about -0.1 per unit of risk. If you would invest 365.00 in Electrovaya Common Shares on September 14, 2024 and sell it today you would lose (97.00) from holding Electrovaya Common Shares or give up 26.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.63% |
| Values | Daily Returns |
Electrovaya Common Shares vs. Spectaire Holdings
Performance |
| Timeline |
| Electrovaya Common Shares |
| Spectaire Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Electrovaya Common and Spectaire Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and Spectaire Holdings
The main advantage of trading using opposite Electrovaya Common and Spectaire Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, Spectaire Holdings 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 Spectaire Holdings will offset losses from the drop in Spectaire Holdings' long position.| Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Elong Power Holding | Electrovaya Common vs. Enovix Corp | Electrovaya Common vs. Eos Energy Enterprises |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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