Correlation Between AT S and Eltek

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

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

Diversification Opportunities for AT S and Eltek

-0.53

Correlation Coefficient

AT S  Eltek

Excellent diversification

The 3 months correlation between ASAAF and Eltek is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AT S Austria and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek and AT S 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 AT S Austria are associated (or correlated) with Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of AT S i.e., AT S and Eltek go up and down completely randomly.

Pair Corralation between AT S and Eltek

If you would invest  1,101  in Eltek on September 16, 2024 and sell it today you would earn a total of  1.00  from holding Eltek or generate 0.09% return on investment over 90 days.

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

AT S Austria  vs.  Eltek

AT S Austria

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AT S Austria are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, AT S is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Eltek

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eltek are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Eltek is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with AT S and Eltek

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

The idea behind AT S Austria and Eltek 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.