Correlation Between WonderFi Technologies and E L

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

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

Diversification Opportunities for WonderFi Technologies and E L

-0.61

Correlation Coefficient

WonderFi Technologies  E L

Excellent diversification

The 3 months correlation between WonderFi and ELF-PH is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding WonderFi Technologies 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 WonderFi Technologies 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 WonderFi Technologies 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 WonderFi Technologies i.e., WonderFi Technologies and E L go up and down completely randomly.

Pair Corralation between WonderFi Technologies and E L

Assuming the 90 days trading horizon WonderFi Technologies is expected to generate 9.23 times more return on investment than E L. However, WonderFi Technologies is 9.23 times more volatile than E L Financial 3. It trades about 0.06 of its potential returns per unit of risk. E L Financial 3 is currently generating about 0.11 per unit of risk. If you would invest  12.00  in WonderFi Technologies on July 6, 2025 and sell it today you would earn a total of  22.00  from holding WonderFi Technologies or generate 183.33% return on investment over 90 days.

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

WonderFi Technologies  vs.  E L Financial 3

WonderFi Technologies

Risk-Adjusted Performance

Weakest

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

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 20 (%) 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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with WonderFi Technologies and E L

The main advantage of trading using opposite WonderFi Technologies and E L positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WonderFi Technologies 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 WonderFi Technologies 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.