Correlation Between ETFS Coffee and EMBARK EDUCATION

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

By analyzing existing cross correlation between ETFS Coffee ETC and EMBARK EDUCATION LTD, you can compare the effects of market volatilities on ETFS Coffee and EMBARK EDUCATION 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 ETFS Coffee with a short position of EMBARK EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Coffee and EMBARK EDUCATION.

Diversification Opportunities for ETFS Coffee and EMBARK EDUCATION

0.0

Correlation Coefficient

ETFS Coffee  EMBARK EDUCATION

Pay attention - limited upside

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

Pair Corralation between ETFS Coffee and EMBARK EDUCATION

If you would invest  31.00  in EMBARK EDUCATION LTD on April 24, 2025 and sell it today you would earn a total of  0.00  from holding EMBARK EDUCATION LTD or generate 0.0% return on investment over 90 days.

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

ETFS Coffee ETC  vs.  EMBARK EDUCATION LTD

ETFS Coffee ETC

Risk-Adjusted Performance

Very Weak

Over the last 90 days ETFS Coffee ETC 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 nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

EMBARK EDUCATION LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days EMBARK EDUCATION LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EMBARK EDUCATION is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ETFS Coffee and EMBARK EDUCATION

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

The idea behind ETFS Coffee ETC and EMBARK EDUCATION LTD 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.