Correlation Between Elbit Systems and Archer Aviation

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

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

Diversification Opportunities for Elbit Systems and Archer Aviation

0.0

Correlation Coefficient

Elbit Systems  Archer Aviation

Pay attention - limited upside

The 3 months correlation between Elbit and Archer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Systems and Archer Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Aviation and Elbit Systems 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 Elbit Systems are associated (or correlated) with Archer Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Aviation has no effect on the direction of Elbit Systems i.e., Elbit Systems and Archer Aviation go up and down completely randomly.

Pair Corralation between Elbit Systems and Archer Aviation

If you would invest  918.00  in Archer Aviation on February 3, 2025 and sell it today you would earn a total of  11.00  from holding Archer Aviation or generate 1.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Elbit Systems  vs.  Archer Aviation

Elbit Systems

Risk-Adjusted Performance

Solid

Over the last 90 days Elbit Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Elbit Systems is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Archer Aviation

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Archer Aviation are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical indicators, Archer Aviation may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Elbit Systems and Archer Aviation

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

The idea behind Elbit Systems and Archer Aviation 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 CEOs Directory module to screen CEOs from public companies around the world.