Correlation Between Eltek and Intellicheck Mobilisa

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

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

Diversification Opportunities for Eltek and Intellicheck Mobilisa

0.05

Correlation Coefficient

Eltek  Intellicheck Mobilisa

Significant diversification

The 3 months correlation between Eltek and Intellicheck is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa and Eltek 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 Eltek are associated (or correlated) with Intellicheck Mobilisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellicheck Mobilisa has no effect on the direction of Eltek i.e., Eltek and Intellicheck Mobilisa go up and down completely randomly.

Pair Corralation between Eltek and Intellicheck Mobilisa

Given the investment horizon of 90 days Eltek is expected to generate 0.48 times more return on investment than Intellicheck Mobilisa. However, Eltek is 2.08 times less risky than Intellicheck Mobilisa. It trades about 0.09 of its potential returns per unit of risk. Intellicheck Mobilisa is currently generating about -0.01 per unit of risk. If you would invest  1,025  in Eltek on July 6, 2025 and sell it today you would earn a total of  77.00  from holding Eltek or generate 7.51% return on investment over 90 days.

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

Eltek  vs.  Intellicheck Mobilisa

Eltek

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eltek are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Eltek may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Intellicheck Mobilisa

Risk-Adjusted Performance

Weakest

Over the last 90 days Intellicheck Mobilisa has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Intellicheck Mobilisa is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Eltek and Intellicheck Mobilisa

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

The idea behind Eltek and Intellicheck Mobilisa 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.