Correlation Between Caseys General and Elis SA
Can any of the company-specific risk be diversified away by investing in both Caseys General and Elis SA 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 Caseys General and Elis SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and Elis SA, you can compare the effects of market volatilities on Caseys General and Elis SA 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 Caseys General with a short position of Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Elis SA.
Diversification Opportunities for Caseys General and Elis SA
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caseys and Elis is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis SA and Caseys General 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 Caseys General Stores are associated (or correlated) with Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of Caseys General i.e., Caseys General and Elis SA go up and down completely randomly.
Pair Corralation between Caseys General and Elis SA
Assuming the 90 days trading horizon Caseys General is expected to generate 1.68 times less return on investment than Elis SA. In addition to that, Caseys General is 1.68 times more volatile than Elis SA. It trades about 0.06 of its total potential returns per unit of risk. Elis SA is currently generating about 0.16 per unit of volatility. If you would invest 2,177 in Elis SA on April 23, 2025 and sell it today you would earn a total of 315.00 from holding Elis SA or generate 14.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Caseys General Stores vs. Elis SA
Performance |
Timeline |
Caseys General Stores |
Elis SA |
Caseys General and Elis SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Caseys General and Elis SA
The main advantage of trading using opposite Caseys General and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, Elis SA 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 Elis SA will offset losses from the drop in Elis SA's long position.Caseys General vs. Norwegian Air Shuttle | Caseys General vs. SEALED AIR | Caseys General vs. LAir Liquide SA | Caseys General vs. Carsales |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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