Correlation Between Exro Technologies and Electrovaya
Can any of the company-specific risk be diversified away by investing in both Exro Technologies and Electrovaya 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 Exro Technologies and Electrovaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exro Technologies and Electrovaya, you can compare the effects of market volatilities on Exro Technologies and Electrovaya 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 Exro Technologies with a short position of Electrovaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exro Technologies and Electrovaya.
Diversification Opportunities for Exro Technologies and Electrovaya
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exro and Electrovaya is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Exro Technologies and Electrovaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya and Exro Technologies 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 Exro Technologies are associated (or correlated) with Electrovaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya has no effect on the direction of Exro Technologies i.e., Exro Technologies and Electrovaya go up and down completely randomly.
Pair Corralation between Exro Technologies and Electrovaya
If you would invest 9.20 in Exro Technologies on September 3, 2024 and sell it today you would earn a total of 1.80 from holding Exro Technologies or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Exro Technologies vs. Electrovaya
Performance |
| Timeline |
| Exro Technologies |
| Electrovaya |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Exro Technologies and Electrovaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exro Technologies and Electrovaya
The main advantage of trading using opposite Exro Technologies and Electrovaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exro Technologies position performs unexpectedly, Electrovaya 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 Electrovaya will offset losses from the drop in Electrovaya's long position.| Exro Technologies vs. Novonix Ltd ADR | Exro Technologies vs. Magnis Energy Technologies | Exro Technologies vs. Ilika plc | Exro Technologies vs. FuelPositive Corp |
| Electrovaya vs. Eguana Technologies | Electrovaya vs. Nano One Materials | Electrovaya vs. Solar Alliance Energy | Electrovaya vs. Exro Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |