Correlation Between Element Fleet and ASICS

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

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

Diversification Opportunities for Element Fleet and ASICS

0.14

Correlation Coefficient

Element Fleet  ASICS

Average diversification

The 3 months correlation between Element and ASICS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Element Fleet Management and ASICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASICS and Element Fleet 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 Element Fleet Management are associated (or correlated) with ASICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASICS has no effect on the direction of Element Fleet i.e., Element Fleet and ASICS go up and down completely randomly.

Pair Corralation between Element Fleet and ASICS

Assuming the 90 days horizon Element Fleet Management is expected to generate 3.4 times more return on investment than ASICS. However, Element Fleet is 3.4 times more volatile than ASICS. It trades about 0.01 of its potential returns per unit of risk. ASICS is currently generating about -0.22 per unit of risk. If you would invest  2,620  in Element Fleet Management on September 8, 2025 and sell it today you would earn a total of  3.00  from holding Element Fleet Management or generate 0.11% return on investment over 90 days.

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

Element Fleet Management  vs.  ASICS

Element Fleet Management

Risk-Adjusted Performance

Weakest

Over the last 90 days Element Fleet Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Element Fleet is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

ASICS

Risk-Adjusted Performance

Weakest

Over the last 90 days ASICS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Element Fleet and ASICS

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

The idea behind Element Fleet Management and ASICS 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.