Correlation Between Quipt Home and E L

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

By analyzing existing cross correlation between Quipt Home Medical and E L Financial 3, you can compare the effects of market volatilities on Quipt Home and E L 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 Quipt Home with a short position of E L. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quipt Home and E L.

Diversification Opportunities for Quipt Home and E L

0.64

Correlation Coefficient

Quipt Home  E L

Poor diversification

The 3 months correlation between Quipt and ELF-PH is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Quipt Home Medical and E L Financial 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E L Financial and Quipt Home 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 Quipt Home Medical are associated (or correlated) with E L. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E L Financial has no effect on the direction of Quipt Home i.e., Quipt Home and E L go up and down completely randomly.

Pair Corralation between Quipt Home and E L

Assuming the 90 days trading horizon Quipt Home Medical is expected to generate 14.1 times more return on investment than E L. However, Quipt Home is 14.1 times more volatile than E L Financial 3. It trades about 0.08 of its potential returns per unit of risk. E L Financial 3 is currently generating about 0.23 per unit of risk. If you would invest  254.00  in Quipt Home Medical on May 26, 2025 and sell it today you would earn a total of  43.00  from holding Quipt Home Medical or generate 16.93% return on investment over 90 days.

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

Quipt Home Medical  vs.  E L Financial 3

Quipt Home Medical

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Quipt Home Medical are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Quipt Home displayed solid returns over the last few months and may actually be approaching a breakup point.

E L Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in E L Financial 3 are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, E L is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Quipt Home and E L

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

The idea behind Quipt Home Medical and E L Financial 3 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.