Correlation Between 49327M3H5 and Electrovaya Common

Can any of the company-specific risk be diversified away by investing in both 49327M3H5 and Electrovaya Common 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 49327M3H5 and Electrovaya Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KEY 5 26 JAN 33 and Electrovaya Common Shares, you can compare the effects of market volatilities on 49327M3H5 and Electrovaya Common 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 49327M3H5 with a short position of Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of 49327M3H5 and Electrovaya Common.

Diversification Opportunities for 49327M3H5 and Electrovaya Common

-0.02

Correlation Coefficient

49327M3H5  Electrovaya Common

Good diversification

The 3 months correlation between 49327M3H5 and Electrovaya is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding KEY 5 26 JAN 33 and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares and 49327M3H5 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 KEY 5 26 JAN 33 are associated (or correlated) with Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of 49327M3H5 i.e., 49327M3H5 and Electrovaya Common go up and down completely randomly.

Pair Corralation between 49327M3H5 and Electrovaya Common

Assuming the 90 days trading horizon KEY 5 26 JAN 33 is expected to generate 0.3 times more return on investment than Electrovaya Common. However, KEY 5 26 JAN 33 is 3.29 times less risky than Electrovaya Common. It trades about -0.01 of its potential returns per unit of risk. Electrovaya Common Shares is currently generating about -0.01 per unit of risk. If you would invest  10,039  in KEY 5 26 JAN 33 on October 4, 2024 and sell it today you would lose (777.00) from holding KEY 5 26 JAN 33 or give up 7.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	89.11%
Values	Daily Returns

KEY 5 26 JAN 33  vs.  Electrovaya Common Shares

49327M3H5

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KEY 5 26 JAN 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KEY 5 26 JAN 33 investors.

Electrovaya Common Shares

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Electrovaya Common Shares are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Electrovaya Common sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 49327M3H5 and Electrovaya Common

The main advantage of trading using opposite 49327M3H5 and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 49327M3H5 position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common's long position.

The idea behind KEY 5 26 JAN 33 and Electrovaya Common Shares 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.