Correlation Between Electra Battery and Jewett Cameron

Can any of the company-specific risk be diversified away by investing in both Electra Battery and Jewett Cameron 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 Electra Battery and Jewett Cameron into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Electra Battery Materials and Jewett Cameron Trading, you can compare the effects of market volatilities on Electra Battery and Jewett Cameron 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 Electra Battery with a short position of Jewett Cameron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electra Battery and Jewett Cameron.

Diversification Opportunities for Electra Battery and Jewett Cameron

0.23

Correlation Coefficient

Electra Battery  Jewett Cameron

Modest diversification

The 3 months correlation between Electra and Jewett is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Electra Battery Materials and Jewett Cameron Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jewett Cameron Trading and Electra Battery 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 Electra Battery Materials are associated (or correlated) with Jewett Cameron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jewett Cameron Trading has no effect on the direction of Electra Battery i.e., Electra Battery and Jewett Cameron go up and down completely randomly.

Pair Corralation between Electra Battery and Jewett Cameron

Given the investment horizon of 90 days Electra Battery Materials is expected to under-perform the Jewett Cameron. In addition to that, Electra Battery is 1.36 times more volatile than Jewett Cameron Trading. It trades about -0.19 of its total potential returns per unit of risk. Jewett Cameron Trading is currently generating about 0.06 per unit of volatility. If you would invest  421.00  in Jewett Cameron Trading on December 29, 2024 and sell it today you would earn a total of  39.00  from holding Jewett Cameron Trading or generate 9.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Electra Battery Materials  vs.  Jewett Cameron Trading

Electra Battery Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Electra Battery Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Jewett Cameron Trading

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jewett Cameron Trading are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Jewett Cameron exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Electra Battery and Jewett Cameron

The main advantage of trading using opposite Electra Battery and Jewett Cameron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electra Battery position performs unexpectedly, Jewett Cameron 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 Jewett Cameron will offset losses from the drop in Jewett Cameron's long position.

The idea behind Electra Battery Materials and Jewett Cameron Trading 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.