Correlation Between Broadstone Net and Electrovaya Common

Can any of the company-specific risk be diversified away by investing in both Broadstone Net 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 Broadstone Net and Electrovaya Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Broadstone Net Lease and Electrovaya Common Shares, you can compare the effects of market volatilities on Broadstone Net 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 Broadstone Net with a short position of Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadstone Net and Electrovaya Common.

Diversification Opportunities for Broadstone Net and Electrovaya Common

-0.28

Correlation Coefficient

Broadstone Net  Electrovaya Common

Very good diversification

The 3 months correlation between Broadstone and Electrovaya is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Broadstone Net Lease 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 Broadstone Net 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 Broadstone Net Lease 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 Broadstone Net i.e., Broadstone Net and Electrovaya Common go up and down completely randomly.

Pair Corralation between Broadstone Net and Electrovaya Common

Considering the 90-day investment horizon Broadstone Net Lease is expected to generate 0.38 times more return on investment than Electrovaya Common. However, Broadstone Net Lease is 2.62 times less risky than Electrovaya Common. It trades about 0.02 of its potential returns per unit of risk. Electrovaya Common Shares is currently generating about -0.01 per unit of risk. If you would invest  1,431  in Broadstone Net Lease on September 24, 2024 and sell it today you would earn a total of  176.00  from holding Broadstone Net Lease or generate 12.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Broadstone Net Lease  vs.  Electrovaya Common Shares

Broadstone Net Lease

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Broadstone Net Lease has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Electrovaya Common Shares

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Electrovaya Common Shares are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Electrovaya Common is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Broadstone Net and Electrovaya Common

The main advantage of trading using opposite Broadstone Net and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadstone Net 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.

The idea behind Broadstone Net Lease and Electrovaya Common Shares pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.