Correlation Between Eltek and Tigo Energy

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

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

Diversification Opportunities for Eltek and Tigo Energy

0.85

Correlation Coefficient

Eltek  Tigo Energy

Very poor diversification

The 3 months correlation between Eltek and Tigo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and Tigo Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigo Energy 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 Tigo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigo Energy has no effect on the direction of Eltek i.e., Eltek and Tigo Energy go up and down completely randomly.

Pair Corralation between Eltek and Tigo Energy

Given the investment horizon of 90 days Eltek is expected to generate 1.28 times less return on investment than Tigo Energy. But when comparing it to its historical volatility, Eltek is 3.71 times less risky than Tigo Energy. It trades about 0.22 of its potential returns per unit of risk. Tigo Energy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  235.00  in Tigo Energy on July 25, 2025 and sell it today you would earn a total of  13.00  from holding Tigo Energy or generate 5.53% return on investment over 90 days.

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

Eltek  vs.  Tigo Energy

Eltek

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eltek are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Eltek may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Tigo Energy

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tigo Energy are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Tigo Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eltek and Tigo Energy

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

The idea behind Eltek and Tigo Energy 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.