Correlation Between Bri Chem and E L

Can any of the company-specific risk be diversified away by investing in both Bri Chem and E L 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 Bri Chem and E L into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bri Chem Corp and E L Financial Corp, you can compare the effects of market volatilities on Bri Chem and E L 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 Bri Chem with a short position of E L. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bri Chem and E L.

Diversification Opportunities for Bri Chem and E L

-0.34

Correlation Coefficient

Bri Chem  E L

Very good diversification

The 3 months correlation between Bri and ELF-PG is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bri Chem Corp and E L Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E L Financial and Bri Chem 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 Bri Chem Corp are associated (or correlated) with E L. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E L Financial has no effect on the direction of Bri Chem i.e., Bri Chem and E L go up and down completely randomly.

Pair Corralation between Bri Chem and E L

Assuming the 90 days trading horizon Bri Chem Corp is expected to under-perform the E L. In addition to that, Bri Chem is 11.0 times more volatile than E L Financial Corp. It trades about -0.02 of its total potential returns per unit of risk. E L Financial Corp is currently generating about 0.25 per unit of volatility. If you would invest  1,970  in E L Financial Corp on April 25, 2025 and sell it today you would earn a total of  164.00  from holding E L Financial Corp or generate 8.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bri Chem Corp  vs.  E L Financial Corp

Bri Chem Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bri Chem Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

E L Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in E L Financial Corp are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, E L may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bri Chem and E L

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

The idea behind Bri Chem Corp and E L Financial Corp 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.