Correlation Between Elliptic Laboratories and Polight ASA
Can any of the company-specific risk be diversified away by investing in both Elliptic Laboratories and Polight ASA 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 Elliptic Laboratories and Polight ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elliptic Laboratories AS and Polight ASA, you can compare the effects of market volatilities on Elliptic Laboratories and Polight ASA 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 Elliptic Laboratories with a short position of Polight ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elliptic Laboratories and Polight ASA.
Diversification Opportunities for Elliptic Laboratories and Polight ASA
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elliptic and Polight is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Elliptic Laboratories AS and Polight ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polight ASA and Elliptic Laboratories 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 Elliptic Laboratories AS are associated (or correlated) with Polight ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polight ASA has no effect on the direction of Elliptic Laboratories i.e., Elliptic Laboratories and Polight ASA go up and down completely randomly.
Pair Corralation between Elliptic Laboratories and Polight ASA
Assuming the 90 days trading horizon Elliptic Laboratories AS is expected to under-perform the Polight ASA. But the stock apears to be less risky and, when comparing its historical volatility, Elliptic Laboratories AS is 1.17 times less risky than Polight ASA. The stock trades about -0.01 of its potential returns per unit of risk. The Polight ASA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 373.00 in Polight ASA on November 2, 2024 and sell it today you would lose (40.00) from holding Polight ASA or give up 10.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
Elliptic Laboratories AS vs. Polight ASA
Performance |
| Timeline |
| Elliptic Laboratories |
| Polight ASA |
Elliptic Laboratories and Polight ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elliptic Laboratories and Polight ASA
The main advantage of trading using opposite Elliptic Laboratories and Polight ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elliptic Laboratories position performs unexpectedly, Polight ASA 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 Polight ASA will offset losses from the drop in Polight ASA's long position.| Elliptic Laboratories vs. XXL ASA | Elliptic Laboratories vs. Nordic Semiconductor ASA | Elliptic Laboratories vs. Aker Horizons AS | Elliptic Laboratories vs. Atlantic Sapphire As |
| Polight ASA vs. Elliptic Laboratories AS | Polight ASA vs. Kongsberg Automotive Holding | Polight ASA vs. REC Silicon ASA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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