Correlation Between Electrovaya Common and Coeur DAlene

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

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

Diversification Opportunities for Electrovaya Common and Coeur DAlene

0.63

Correlation Coefficient

Electrovaya Common  Coeur DAlene

Poor diversification

The 3 months correlation between Electrovaya and Coeur is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Coeur dAlene Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur dAlene Bancorp and Electrovaya Common 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 Electrovaya Common Shares are associated (or correlated) with Coeur DAlene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur dAlene Bancorp has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Coeur DAlene go up and down completely randomly.

Pair Corralation between Electrovaya Common and Coeur DAlene

Given the investment horizon of 90 days Electrovaya Common Shares is expected to under-perform the Coeur DAlene. In addition to that, Electrovaya Common is 2.52 times more volatile than Coeur dAlene Bancorp. It trades about -0.01 of its total potential returns per unit of risk. Coeur dAlene Bancorp is currently generating about 0.08 per unit of volatility. If you would invest  1,080  in Coeur dAlene Bancorp on September 27, 2024 and sell it today you would earn a total of  599.00  from holding Coeur dAlene Bancorp or generate 55.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	85.51%
Values	Daily Returns

Electrovaya Common Shares  vs.  Coeur dAlene Bancorp

Electrovaya Common Shares

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Electrovaya Common Shares are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Electrovaya Common may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Coeur dAlene Bancorp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur dAlene Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Coeur DAlene may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Electrovaya Common and Coeur DAlene

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

The idea behind Electrovaya Common Shares and Coeur dAlene Bancorp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.