Correlation Between Elysee Development and Pinetree Capital

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

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

Diversification Opportunities for Elysee Development and Pinetree Capital

-0.56

Correlation Coefficient

Elysee Development  Pinetree Capital

Excellent diversification

The 3 months correlation between Elysee and Pinetree is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Elysee Development Corp and Pinetree Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinetree Capital and Elysee Development 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 Elysee Development Corp are associated (or correlated) with Pinetree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinetree Capital has no effect on the direction of Elysee Development i.e., Elysee Development and Pinetree Capital go up and down completely randomly.

Pair Corralation between Elysee Development and Pinetree Capital

Assuming the 90 days horizon Elysee Development Corp is expected to generate 0.5 times more return on investment than Pinetree Capital. However, Elysee Development Corp is 2.0 times less risky than Pinetree Capital. It trades about 0.17 of its potential returns per unit of risk. Pinetree Capital is currently generating about -0.03 per unit of risk. If you would invest  24.00  in Elysee Development Corp on May 5, 2025 and sell it today you would earn a total of  5.00  from holding Elysee Development Corp or generate 20.83% return on investment over 90 days.

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

Elysee Development Corp  vs.  Pinetree Capital

Elysee Development Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Elysee Development Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Elysee Development reported solid returns over the last few months and may actually be approaching a breakup point.

Pinetree Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pinetree Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Elysee Development and Pinetree Capital

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

The idea behind Elysee Development Corp and Pinetree Capital 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..