Correlation Between Elcora Advanced and Element Fleet

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

By analyzing existing cross correlation between Elcora Advanced Materials and Element Fleet Management, you can compare the effects of market volatilities on Elcora Advanced and Element Fleet 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 Elcora Advanced with a short position of Element Fleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elcora Advanced and Element Fleet.

Diversification Opportunities for Elcora Advanced and Element Fleet

-0.44

Correlation Coefficient

Elcora Advanced  Element Fleet

Very good diversification

The 3 months correlation between Elcora and Element is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Elcora Advanced Materials and Element Fleet Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Element Fleet Management and Elcora Advanced 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 Elcora Advanced Materials are associated (or correlated) with Element Fleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Element Fleet Management has no effect on the direction of Elcora Advanced i.e., Elcora Advanced and Element Fleet go up and down completely randomly.

Pair Corralation between Elcora Advanced and Element Fleet

Assuming the 90 days horizon Elcora Advanced Materials is expected to generate 32.67 times more return on investment than Element Fleet. However, Elcora Advanced is 32.67 times more volatile than Element Fleet Management. It trades about 0.04 of its potential returns per unit of risk. Element Fleet Management is currently generating about 0.09 per unit of risk. If you would invest  55.00  in Elcora Advanced Materials on April 20, 2025 and sell it today you would lose (43.00) from holding Elcora Advanced Materials or give up 78.18% of portfolio value over 90 days.

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

Elcora Advanced Materials  vs.  Element Fleet Management

Elcora Advanced Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elcora Advanced Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Element Fleet Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Element Fleet Management are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Element Fleet displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Elcora Advanced and Element Fleet

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

The idea behind Elcora Advanced Materials and Element Fleet Management 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.