Correlation Between Bank Central and Electrovaya
Can any of the company-specific risk be diversified away by investing in both Bank Central 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 Bank Central and Electrovaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Electrovaya, you can compare the effects of market volatilities on Bank Central 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 Bank Central with a short position of Electrovaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Electrovaya.
Diversification Opportunities for Bank Central and Electrovaya
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Electrovaya is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Electrovaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya and Bank Central 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 Bank Central Asia 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 Bank Central i.e., Bank Central and Electrovaya go up and down completely randomly.
Pair Corralation between Bank Central and Electrovaya
If you would invest 504.00 in Electrovaya on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Electrovaya or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Bank Central Asia vs. Electrovaya
Performance |
| Timeline |
| Bank Central Asia |
| Electrovaya |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and Electrovaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Electrovaya
The main advantage of trading using opposite Bank Central and Electrovaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central 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.| Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |