Correlation Between Electrovaya Common and Marti Technologies

Can any of the company-specific risk be diversified away by investing in both Electrovaya Common and Marti Technologies 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 Marti Technologies 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 Marti Technologies, you can compare the effects of market volatilities on Electrovaya Common and Marti Technologies 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 Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrovaya Common and Marti Technologies.

Diversification Opportunities for Electrovaya Common and Marti Technologies

0.16

Correlation Coefficient

Electrovaya Common  Marti Technologies

Average diversification

The 3 months correlation between Electrovaya and Marti is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies 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 Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Marti Technologies go up and down completely randomly.

Pair Corralation between Electrovaya Common and Marti Technologies

Given the investment horizon of 90 days Electrovaya Common Shares is expected to under-perform the Marti Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Electrovaya Common Shares is 1.18 times less risky than Marti Technologies. The stock trades about -0.04 of its potential returns per unit of risk. The Marti Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  342.00  in Marti Technologies on November 29, 2024 and sell it today you would lose (1.00) from holding Marti Technologies or give up 0.29% of portfolio value over 90 days.

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

Electrovaya Common Shares  vs.  Marti Technologies

Electrovaya Common Shares

Risk-Adjusted Performance

Very Weak

Over the last 90 days Electrovaya Common Shares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Marti Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marti Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Marti Technologies may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Electrovaya Common and Marti Technologies

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

The idea behind Electrovaya Common Shares and Marti Technologies 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 Global Correlations module to find global opportunities by holding instruments from different markets.