Correlation Between SRIVARU Holding and GreenPower

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

By analyzing existing cross correlation between SRIVARU Holding Limited and GreenPower Motor, you can compare the effects of market volatilities on SRIVARU Holding and GreenPower 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 SRIVARU Holding with a short position of GreenPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of SRIVARU Holding and GreenPower.

Diversification Opportunities for SRIVARU Holding and GreenPower

0.51

Correlation Coefficient

SRIVARU Holding  GreenPower

Very weak diversification

The 3 months correlation between SRIVARU and GreenPower is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SRIVARU Holding Limited and GreenPower Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPower Motor and SRIVARU Holding 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 SRIVARU Holding Limited are associated (or correlated) with GreenPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPower Motor has no effect on the direction of SRIVARU Holding i.e., SRIVARU Holding and GreenPower go up and down completely randomly.

Pair Corralation between SRIVARU Holding and GreenPower

Given the investment horizon of 90 days SRIVARU Holding Limited is expected to generate 21.83 times more return on investment than GreenPower. However, SRIVARU Holding is 21.83 times more volatile than GreenPower Motor. It trades about 0.11 of its potential returns per unit of risk. GreenPower Motor is currently generating about -0.06 per unit of risk. If you would invest  3.34  in SRIVARU Holding Limited on December 29, 2024 and sell it today you would earn a total of  7.66  from holding SRIVARU Holding Limited or generate 229.34% return on investment over 90 days.

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

SRIVARU Holding Limited  vs.  GreenPower Motor

SRIVARU Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SRIVARU Holding Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile primary indicators, SRIVARU Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

GreenPower Motor

Risk-Adjusted Performance

Very Weak

Over the last 90 days GreenPower Motor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with SRIVARU Holding and GreenPower

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

The idea behind SRIVARU Holding Limited and GreenPower Motor 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.