Correlation Between Eltek and Generation Essentials

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

By analyzing existing cross correlation between Eltek and The Generation Essentials, you can compare the effects of market volatilities on Eltek and Generation Essentials 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 Eltek with a short position of Generation Essentials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eltek and Generation Essentials.

Diversification Opportunities for Eltek and Generation Essentials

0.0

Correlation Coefficient

Eltek  Generation Essentials

Pay attention - limited upside

The 3 months correlation between Eltek and Generation is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and The Generation Essentials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Generation Essentials and Eltek 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 Eltek are associated (or correlated) with Generation Essentials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Generation Essentials has no effect on the direction of Eltek i.e., Eltek and Generation Essentials go up and down completely randomly.

Pair Corralation between Eltek and Generation Essentials

Given the investment horizon of 90 days Eltek is expected to under-perform the Generation Essentials. But the stock apears to be less risky and, when comparing its historical volatility, Eltek is 6.64 times less risky than Generation Essentials. The stock trades about -0.08 of its potential returns per unit of risk. The The Generation Essentials is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  296.00  in The Generation Essentials on September 2, 2025 and sell it today you would lose (184.00) from holding The Generation Essentials or give up 62.16% of portfolio value over 90 days.

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

Eltek  vs.  The Generation Essentials

Eltek

Risk-Adjusted Performance

Weakest

Over the last 90 days Eltek has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2026. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

The Generation Essentials

Risk-Adjusted Performance

Weakest

Over the last 90 days The Generation Essentials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Eltek and Generation Essentials

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

The idea behind Eltek and The Generation Essentials 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.