Correlation Between Electrovaya Common and JOHNSON
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By analyzing existing cross correlation between Electrovaya Common Shares and JOHNSON JOHNSON, you can compare the effects of market volatilities on Electrovaya Common and JOHNSON 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 JOHNSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and JOHNSON.
Diversification Opportunities for Electrovaya Common and JOHNSON
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrovaya and JOHNSON is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and JOHNSON JOHNSON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JOHNSON JOHNSON 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 JOHNSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JOHNSON JOHNSON has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and JOHNSON go up and down completely randomly.
Pair Corralation between Electrovaya Common and JOHNSON
Given the investment horizon of 90 days Electrovaya Common Shares is expected to under-perform the JOHNSON. In addition to that, Electrovaya Common is 2.43 times more volatile than JOHNSON JOHNSON. It trades about -0.01 of its total potential returns per unit of risk. JOHNSON JOHNSON is currently generating about -0.01 per unit of volatility. If you would invest 6,835 in JOHNSON JOHNSON on August 30, 2024 and sell it today you would lose (1,018) from holding JOHNSON JOHNSON or give up 14.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Electrovaya Common Shares vs. JOHNSON JOHNSON
Performance |
| Timeline |
| Electrovaya Common Shares |
| JOHNSON JOHNSON |
Electrovaya Common and JOHNSON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrovaya Common and JOHNSON
The main advantage of trading using opposite Electrovaya Common and JOHNSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, JOHNSON 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 JOHNSON will offset losses from the drop in JOHNSON's long position.| Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Microvast Holdings | Electrovaya Common vs. Solid Power | Electrovaya Common vs. Enovix Corp |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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