Correlation Between Amprius Technologies and Electrovaya Common

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Can any of the company-specific risk be diversified away by investing in both Amprius Technologies 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 Amprius Technologies and Electrovaya Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amprius Technologies and Electrovaya Common Shares, you can compare the effects of market volatilities on Amprius Technologies 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 Amprius Technologies with a short position of Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amprius Technologies and Electrovaya Common.

Diversification Opportunities for Amprius Technologies and Electrovaya Common

0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between Amprius and Electrovaya is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Amprius Technologies 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 Amprius Technologies 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 Amprius Technologies 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 Amprius Technologies i.e., Amprius Technologies and Electrovaya Common go up and down completely randomly.

Pair Corralation between Amprius Technologies and Electrovaya Common

Given the investment horizon of 90 days Amprius Technologies is expected to under-perform the Electrovaya Common. In addition to that, Amprius Technologies is 1.23 times more volatile than Electrovaya Common Shares. It trades about -0.23 of its total potential returns per unit of risk. Electrovaya Common Shares is currently generating about 0.22 per unit of volatility. If you would invest  357.00  in Electrovaya Common Shares on November 24, 2023 and sell it today you would earn a total of  51.00  from holding Electrovaya Common Shares or generate 14.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Amprius Technologies  vs.  Electrovaya Common Shares

 Performance 
       Timeline  
Amprius Technologies 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Amprius Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady 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.
Electrovaya Common Shares 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Electrovaya Common Shares are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Electrovaya Common sustained solid returns over the last few months and may actually be approaching a breakup point.

Amprius Technologies and Electrovaya Common Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amprius Technologies and Electrovaya Common

The main advantage of trading using opposite Amprius Technologies and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amprius Technologies 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 Amprius Technologies 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.
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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