Correlation Between Electrovaya Common and Vaxxinity

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

Diversification Opportunities for Electrovaya Common and Vaxxinity

  Correlation Coefficient

Very weak diversification

The 3 months correlation between Electrovaya and Vaxxinity is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Electrovaya Common Shares and Vaxxinity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxxinity 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 Vaxxinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxxinity has no effect on the direction of Electrovaya Common i.e., Electrovaya Common and Vaxxinity go up and down completely randomly.

Pair Corralation between Electrovaya Common and Vaxxinity

Given the investment horizon of 90 days Electrovaya Common Shares is expected to generate 0.57 times more return on investment than Vaxxinity. However, Electrovaya Common Shares is 1.74 times less risky than Vaxxinity. It trades about -0.43 of its potential returns per unit of risk. Vaxxinity is currently generating about -0.45 per unit of risk. If you would invest  392.00  in Electrovaya Common Shares on January 17, 2024 and sell it today you would lose (84.00) from holding Electrovaya Common Shares or give up 21.43% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

Electrovaya Common Shares  vs.  Vaxxinity

Electrovaya Common Shares 

Risk-Adjusted Performance

0 of 100

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 uncertain 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.

Risk-Adjusted Performance

0 of 100

Very Weak
Over the last 90 days Vaxxinity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Electrovaya Common and Vaxxinity Volatility Contrast

   Predicted Return Density   

Pair Trading with Electrovaya Common and Vaxxinity

The main advantage of trading using opposite Electrovaya Common and Vaxxinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrovaya Common position performs unexpectedly, Vaxxinity 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 Vaxxinity will offset losses from the drop in Vaxxinity's long position.
The idea behind Electrovaya Common Shares and Vaxxinity 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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