Correlation Between ELEKTROBIT and Gap

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

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

Diversification Opportunities for ELEKTROBIT and Gap

-0.62

Correlation Coefficient

ELEKTROBIT  Gap

Excellent diversification

The 3 months correlation between ELEKTROBIT and Gap is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ELEKTROBIT and The Gap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gap and ELEKTROBIT 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 ELEKTROBIT are associated (or correlated) with Gap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gap has no effect on the direction of ELEKTROBIT i.e., ELEKTROBIT and Gap go up and down completely randomly.

Pair Corralation between ELEKTROBIT and Gap

Assuming the 90 days trading horizon ELEKTROBIT is expected to generate 0.69 times more return on investment than Gap. However, ELEKTROBIT is 1.44 times less risky than Gap. It trades about 0.11 of its potential returns per unit of risk. The Gap is currently generating about 0.05 per unit of risk. If you would invest  769.00  in ELEKTROBIT on April 22, 2025 and sell it today you would earn a total of  140.00  from holding ELEKTROBIT or generate 18.21% return on investment over 90 days.

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

ELEKTROBIT  vs.  The Gap

ELEKTROBIT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ELEKTROBIT are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, ELEKTROBIT exhibited solid returns over the last few months and may actually be approaching a breakup point.

Gap

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in The Gap are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Gap may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ELEKTROBIT and Gap

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

The idea behind ELEKTROBIT and The Gap 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.