Correlation Between Embark Commodity and Value Line

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

By analyzing existing cross correlation between Embark Commodity Strategy and Value Line Premier, you can compare the effects of market volatilities on Embark Commodity and Value Line 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 Embark Commodity with a short position of Value Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embark Commodity and Value Line.

Diversification Opportunities for Embark Commodity and Value Line

-0.77

Correlation Coefficient

Embark Commodity  Value Line

Pay attention - limited upside

The 3 months correlation between Embark and Value is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Embark Commodity Strategy and Value Line Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line Premier and Embark Commodity 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 Embark Commodity Strategy are associated (or correlated) with Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line Premier has no effect on the direction of Embark Commodity i.e., Embark Commodity and Value Line go up and down completely randomly.

Pair Corralation between Embark Commodity and Value Line

Assuming the 90 days horizon Embark Commodity Strategy is expected to generate 1.18 times more return on investment than Value Line. However, Embark Commodity is 1.18 times more volatile than Value Line Premier. It trades about 0.06 of its potential returns per unit of risk. Value Line Premier is currently generating about -0.01 per unit of risk. If you would invest  1,139  in Embark Commodity Strategy on September 16, 2025 and sell it today you would earn a total of  23.00  from holding Embark Commodity Strategy or generate 2.02% return on investment over 90 days.

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

Embark Commodity Strategy  vs.  Value Line Premier

Embark Commodity Strategy

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Embark Commodity Strategy are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Embark Commodity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Value Line Premier

Risk-Adjusted Performance

Weakest

Over the last 90 days Value Line Premier has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Value Line is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Embark Commodity and Value Line

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

The idea behind Embark Commodity Strategy and Value Line Premier 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..