Correlation Between 1 800 and Envela Corp

Can any of the company-specific risk be diversified away by investing in both 1 800 and Envela Corp 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 1 800 and Envela Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 1 800 FLOWERSCOM and Envela Corp, you can compare the effects of market volatilities on 1 800 and Envela Corp 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 1 800 with a short position of Envela Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1 800 and Envela Corp.

Diversification Opportunities for 1 800 and Envela Corp

0.05

Correlation Coefficient

1 800  Envela Corp

Significant diversification

The 3 months correlation between FLWS and Envela is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding 1 800 FLOWERSCOM and Envela Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Envela Corp and 1 800 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 1 800 FLOWERSCOM are associated (or correlated) with Envela Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Envela Corp has no effect on the direction of 1 800 i.e., 1 800 and Envela Corp go up and down completely randomly.

Pair Corralation between 1 800 and Envela Corp

Given the investment horizon of 90 days 1 800 FLOWERSCOM is expected to under-perform the Envela Corp. In addition to that, 1 800 is 1.1 times more volatile than Envela Corp. It trades about -0.08 of its total potential returns per unit of risk. Envela Corp is currently generating about 0.04 per unit of volatility. If you would invest  426.00  in Envela Corp on January 26, 2024 and sell it today you would earn a total of  16.00  from holding Envela Corp or generate 3.76% return on investment over 90 days.

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

1 800 FLOWERSCOM  vs.  Envela Corp

1 800 FLOWERSCOM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1 800 FLOWERSCOM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Envela Corp

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Envela Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Envela Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with 1 800 and Envela Corp

The main advantage of trading using opposite 1 800 and Envela Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1 800 position performs unexpectedly, Envela Corp 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 Envela Corp will offset losses from the drop in Envela Corp's long position.

The idea behind 1 800 FLOWERSCOM and Envela 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.