Correlation Between Creative Global and Eltek
Can any of the company-specific risk be diversified away by investing in both Creative Global 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 Creative Global and Eltek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creative Global Technology and Eltek, you can compare the effects of market volatilities on Creative Global 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 Creative Global with a short position of Eltek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creative Global and Eltek.
Diversification Opportunities for Creative Global and Eltek
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Creative and Eltek is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Creative Global Technology and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek and Creative Global 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 Creative Global Technology 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 Creative Global i.e., Creative Global and Eltek go up and down completely randomly.
Pair Corralation between Creative Global and Eltek
Given the investment horizon of 90 days Creative Global Technology is expected to generate 38.61 times more return on investment than Eltek. However, Creative Global is 38.61 times more volatile than Eltek. It trades about 0.19 of its potential returns per unit of risk. Eltek is currently generating about 0.06 per unit of risk. If you would invest 0.00 in Creative Global Technology on October 11, 2024 and sell it today you would earn a total of 592.00 from holding Creative Global Technology or generate 9.223372036854776E16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 6.06% |
Values | Daily Returns |
Creative Global Technology vs. Eltek
Performance |
Timeline |
Creative Global Tech |
Eltek |
Creative Global and Eltek Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Creative Global and Eltek
The main advantage of trading using opposite Creative Global and Eltek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creative Global 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.Creative Global vs. Eltek | Creative Global vs. RBC Bearings Incorporated | Creative Global vs. Intuitive Surgical | Creative Global vs. Garmin |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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