Correlation Between StableX Technologies, and Erayak Power
Can any of the company-specific risk be diversified away by investing in both StableX Technologies, and Erayak Power 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 StableX Technologies, and Erayak Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StableX Technologies, and Erayak Power Solution, you can compare the effects of market volatilities on StableX Technologies, and Erayak Power 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 StableX Technologies, with a short position of Erayak Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of StableX Technologies, and Erayak Power.
Diversification Opportunities for StableX Technologies, and Erayak Power
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between StableX and Erayak is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding StableX Technologies, and Erayak Power Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erayak Power Solution and StableX 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 StableX Technologies, are associated (or correlated) with Erayak Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erayak Power Solution has no effect on the direction of StableX Technologies, i.e., StableX Technologies, and Erayak Power go up and down completely randomly.
Pair Corralation between StableX Technologies, and Erayak Power
Given the investment horizon of 90 days StableX Technologies, is expected to generate 0.62 times more return on investment than Erayak Power. However, StableX Technologies, is 1.62 times less risky than Erayak Power. It trades about -0.07 of its potential returns per unit of risk. Erayak Power Solution is currently generating about -0.08 per unit of risk. If you would invest 545.00 in StableX Technologies, on September 1, 2025 and sell it today you would lose (210.00) from holding StableX Technologies, or give up 38.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
StableX Technologies, vs. Erayak Power Solution
Performance |
| Timeline |
| StableX Technologies, |
| Erayak Power Solution |
StableX Technologies, and Erayak Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StableX Technologies, and Erayak Power
The main advantage of trading using opposite StableX Technologies, and Erayak Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StableX Technologies, position performs unexpectedly, Erayak Power 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 Erayak Power will offset losses from the drop in Erayak Power's long position.| StableX Technologies, vs. Worthington Steel | StableX Technologies, vs. Tianjin Capital Environmental | StableX Technologies, vs. Hat Trick Beverage | StableX Technologies, vs. BlueScope Steel Ltd |
| Erayak Power vs. Forum Mobile | Erayak Power vs. Central Wireless | Erayak Power vs. DATA Communications Management | Erayak Power vs. International Consolidated Airlines |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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