Correlation Between Element Fleet and Argus Metals

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

Diversification Opportunities for Element Fleet and Argus Metals

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Element and Argus is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Element Fleet Management and Argus Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argus Metals Corp and Element Fleet 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 Element Fleet Management are associated (or correlated) with Argus Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argus Metals Corp has no effect on the direction of Element Fleet i.e., Element Fleet and Argus Metals go up and down completely randomly.

Pair Corralation between Element Fleet and Argus Metals

Assuming the 90 days trading horizon Element Fleet Management is expected to generate 0.16 times more return on investment than Argus Metals. However, Element Fleet Management is 6.28 times less risky than Argus Metals. It trades about 0.03 of its potential returns per unit of risk. Argus Metals Corp is currently generating about -0.05 per unit of risk. If you would invest  3,641  in Element Fleet Management on September 1, 2025 and sell it today you would earn a total of  82.00  from holding Element Fleet Management or generate 2.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Element Fleet Management  vs.  Argus Metals Corp

 Performance 
       Timeline  
Element Fleet Management 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Element Fleet Management are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Element Fleet is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Argus Metals Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Argus Metals Corp 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 fairly stable which may send shares a bit higher in December 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Element Fleet and Argus Metals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Element Fleet and Argus Metals

The main advantage of trading using opposite Element Fleet and Argus Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Element Fleet position performs unexpectedly, Argus Metals 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 Argus Metals will offset losses from the drop in Argus Metals' long position.
The idea behind Element Fleet Management and Argus Metals Corp 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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