Correlation Between Eltek and AVX
Can any of the company-specific risk be diversified away by investing in both Eltek and AVX 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 AVX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eltek and AVX Corporation, you can compare the effects of market volatilities on Eltek and AVX 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 AVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eltek and AVX.
Diversification Opportunities for Eltek and AVX
Pay attention - limited upside
The 3 months correlation between Eltek and AVX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and AVX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVX Corporation 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 AVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVX Corporation has no effect on the direction of Eltek i.e., Eltek and AVX go up and down completely randomly.
Pair Corralation between Eltek and AVX
If you would invest (100.00) in AVX Corporation on January 24, 2024 and sell it today you would earn a total of 100.00 from holding AVX Corporation or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eltek vs. AVX Corp.
Performance |
| Timeline |
| Eltek |
| AVX Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eltek and AVX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eltek and AVX
The main advantage of trading using opposite Eltek and AVX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eltek position performs unexpectedly, AVX 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 AVX will offset losses from the drop in AVX's long position.| Eltek vs. Methode Electronics | Eltek vs. OSI Systems | Eltek vs. Bel Fuse A | Eltek vs. Richardson Electronics |
| AVX vs. Agnico Eagle Mines | AVX vs. United Guardian | AVX vs. Mannatech Incorporated | AVX vs. Yuexiu Transport Infrastructure |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |