Correlation Between Guru Organic and Electra Battery
Can any of the company-specific risk be diversified away by investing in both Guru Organic and Electra Battery 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 Guru Organic and Electra Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guru Organic Energy and Electra Battery Materials, you can compare the effects of market volatilities on Guru Organic and Electra Battery 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 Guru Organic with a short position of Electra Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guru Organic and Electra Battery.
Diversification Opportunities for Guru Organic and Electra Battery
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guru and Electra is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guru Organic Energy and Electra Battery Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra Battery Materials and Guru Organic 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 Guru Organic Energy are associated (or correlated) with Electra Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra Battery Materials has no effect on the direction of Guru Organic i.e., Guru Organic and Electra Battery go up and down completely randomly.
Pair Corralation between Guru Organic and Electra Battery
Assuming the 90 days trading horizon Guru Organic Energy is expected to generate 1.73 times more return on investment than Electra Battery. However, Guru Organic is 1.73 times more volatile than Electra Battery Materials. It trades about 0.09 of its potential returns per unit of risk. Electra Battery Materials is currently generating about -0.1 per unit of risk. If you would invest 161.00 in Guru Organic Energy on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Guru Organic Energy or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guru Organic Energy vs. Electra Battery Materials
Performance |
| Timeline |
| Guru Organic Energy |
| Electra Battery Materials |
Guru Organic and Electra Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guru Organic and Electra Battery
The main advantage of trading using opposite Guru Organic and Electra Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guru Organic position performs unexpectedly, Electra Battery 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 Electra Battery will offset losses from the drop in Electra Battery's long position.| Guru Organic vs. Haivision Systems | Guru Organic vs. Lion Electric Corp | Guru Organic vs. BRP Inc | Guru Organic vs. iShares Canadian HYBrid |
| Electra Battery vs. Frontier Lithium | Electra Battery vs. Electra Battery Materials | Electra Battery vs. E3 Lithium | Electra Battery vs. Canada Nickel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |