Correlation Between Envela Corp and Five Below

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Envela Corp and Five Below 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 Envela Corp and Five Below into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Envela Corp and Five Below, you can compare the effects of market volatilities on Envela Corp and Five Below 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 Envela Corp with a short position of Five Below. Check out your portfolio center. Please also check ongoing floating volatility patterns of Envela Corp and Five Below.

Diversification Opportunities for Envela Corp and Five Below

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between Envela and Five is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Envela Corp and Five Below in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Five Below and Envela Corp 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 Envela Corp are associated (or correlated) with Five Below. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Five Below has no effect on the direction of Envela Corp i.e., Envela Corp and Five Below go up and down completely randomly.

Pair Corralation between Envela Corp and Five Below

Considering the 90-day investment horizon Envela Corp is expected to generate 0.64 times more return on investment than Five Below. However, Envela Corp is 1.55 times less risky than Five Below. It trades about 0.04 of its potential returns per unit of risk. Five Below is currently generating about -0.09 per unit of risk. If you would invest  448.00  in Envela Corp on December 29, 2023 and sell it today you would earn a total of  7.00  from holding Envela Corp or generate 1.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Envela Corp  vs.  Five Below

 Performance 
       Timeline  
Envela Corp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Envela Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Envela Corp is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Five Below 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Five Below has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Envela Corp and Five Below Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Envela Corp and Five Below

The main advantage of trading using opposite Envela Corp and Five Below positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Envela Corp position performs unexpectedly, Five Below 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 Five Below will offset losses from the drop in Five Below's long position.
The idea behind Envela Corp and Five Below 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Global Correlations
Find global opportunities by holding instruments from different markets
Transaction History
View history of all your transactions and understand their impact on performance
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance