Correlation Between Eltek and LogicMark

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

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

Diversification Opportunities for Eltek and LogicMark

-0.08

Correlation Coefficient

Eltek  LogicMark

Good diversification

The 3 months correlation between Eltek and LogicMark is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and LogicMark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogicMark 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 LogicMark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogicMark has no effect on the direction of Eltek i.e., Eltek and LogicMark go up and down completely randomly.

Pair Corralation between Eltek and LogicMark

Given the investment horizon of 90 days Eltek is expected to generate 0.59 times more return on investment than LogicMark. However, Eltek is 1.7 times less risky than LogicMark. It trades about 0.04 of its potential returns per unit of risk. LogicMark is currently generating about -0.08 per unit of risk. If you would invest  807.00  in Eltek on August 11, 2024 and sell it today you would earn a total of  265.00  from holding Eltek or generate 32.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.66%
Values	Daily Returns

Eltek  vs.  LogicMark

Eltek

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eltek has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Eltek is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

LogicMark

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LogicMark has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, LogicMark is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Eltek and LogicMark

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

The idea behind Eltek and LogicMark 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.