Correlation Between SaverOne 2014 and Electro Sensors

Can any of the company-specific risk be diversified away by investing in both SaverOne 2014 and Electro Sensors 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 SaverOne 2014 and Electro Sensors into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SaverOne 2014 Ltd and Electro Sensors, you can compare the effects of market volatilities on SaverOne 2014 and Electro Sensors 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 SaverOne 2014 with a short position of Electro Sensors. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaverOne 2014 and Electro Sensors.

Diversification Opportunities for SaverOne 2014 and Electro Sensors

-0.5

Correlation Coefficient

SaverOne 2014  Electro Sensors

Very good diversification

The 3 months correlation between SaverOne and Electro is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding SaverOne 2014 Ltd and Electro Sensors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electro Sensors and SaverOne 2014 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 SaverOne 2014 Ltd are associated (or correlated) with Electro Sensors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electro Sensors has no effect on the direction of SaverOne 2014 i.e., SaverOne 2014 and Electro Sensors go up and down completely randomly.

Pair Corralation between SaverOne 2014 and Electro Sensors

Assuming the 90 days horizon SaverOne 2014 Ltd is expected to generate 15.61 times more return on investment than Electro Sensors. However, SaverOne 2014 is 15.61 times more volatile than Electro Sensors. It trades about 0.03 of its potential returns per unit of risk. Electro Sensors is currently generating about 0.11 per unit of risk. If you would invest  6.50  in SaverOne 2014 Ltd on September 2, 2024 and sell it today you would lose (5.46) from holding SaverOne 2014 Ltd or give up 84.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	71.19%
Values	Daily Returns

SaverOne 2014 Ltd  vs.  Electro Sensors

SaverOne 2014

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SaverOne 2014 Ltd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, SaverOne 2014 showed solid returns over the last few months and may actually be approaching a breakup point.

Electro Sensors

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Electro Sensors are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Electro Sensors exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SaverOne 2014 and Electro Sensors

The main advantage of trading using opposite SaverOne 2014 and Electro Sensors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaverOne 2014 position performs unexpectedly, Electro Sensors 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 Electro Sensors will offset losses from the drop in Electro Sensors' long position.

The idea behind SaverOne 2014 Ltd and Electro Sensors 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.

Check out your portfolio center.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.