Correlation Between Flux Power and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both Flux Power and Electrovaya Common 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 Flux Power and Electrovaya Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flux Power Holdings and Electrovaya Common Shares, you can compare the effects of market volatilities on Flux Power and Electrovaya Common 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 Flux Power with a short position of Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flux Power and Electrovaya Common.
Diversification Opportunities for Flux Power and Electrovaya Common
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flux and Electrovaya is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Flux Power Holdings and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares and Flux Power 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 Flux Power Holdings are associated (or correlated) with Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of Flux Power i.e., Flux Power and Electrovaya Common go up and down completely randomly.
Pair Corralation between Flux Power and Electrovaya Common
Given the investment horizon of 90 days Flux Power Holdings is expected to under-perform the Electrovaya Common. In addition to that, Flux Power is 1.35 times more volatile than Electrovaya Common Shares. It trades about -0.03 of its total potential returns per unit of risk. Electrovaya Common Shares is currently generating about -0.01 per unit of volatility. If you would invest 412.00 in Electrovaya Common Shares on November 19, 2024 and sell it today you would lose (162.00) from holding Electrovaya Common Shares or give up 39.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Flux Power Holdings vs. Electrovaya Common Shares
Performance |
| Timeline |
| Flux Power Holdings |
| Electrovaya Common Shares |
Flux Power and Electrovaya Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flux Power and Electrovaya Common
The main advantage of trading using opposite Flux Power and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flux Power position performs unexpectedly, Electrovaya Common 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 Common will offset losses from the drop in Electrovaya Common's long position.| Flux Power vs. Espey Mfg Electronics | Flux Power vs. NeoVolta Warrant | Flux Power vs. Kimball Electronics | Flux Power vs. Hayward Holdings |
| Electrovaya Common vs. NL Industries | Electrovaya Common vs. CVR Partners LP | Electrovaya Common vs. Alto Ingredients | Electrovaya Common vs. Sealed Air |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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