Correlation Between Elliptic Laboratories and Techstep ASA

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Can any of the company-specific risk be diversified away by investing in both Elliptic Laboratories and Techstep 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 Techstep 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 Techstep ASA, you can compare the effects of market volatilities on Elliptic Laboratories and Techstep 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 Techstep ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elliptic Laboratories and Techstep ASA.

Diversification Opportunities for Elliptic Laboratories and Techstep ASA

0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Elliptic and Techstep is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Elliptic Laboratories AS and Techstep ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techstep 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 Techstep ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techstep ASA has no effect on the direction of Elliptic Laboratories i.e., Elliptic Laboratories and Techstep ASA go up and down completely randomly.

Pair Corralation between Elliptic Laboratories and Techstep ASA

Assuming the 90 days trading horizon Elliptic Laboratories AS is expected to under-perform the Techstep ASA. In addition to that, Elliptic Laboratories is 1.69 times more volatile than Techstep ASA. It trades about -0.17 of its total potential returns per unit of risk. Techstep ASA is currently generating about -0.02 per unit of volatility. If you would invest  1,280  in Techstep ASA on September 12, 2025 and sell it today you would lose (50.00) from holding Techstep ASA or give up 3.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Elliptic Laboratories AS  vs.  Techstep ASA

 Performance 
       Timeline  
Elliptic Laboratories 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Elliptic Laboratories AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.
Techstep ASA 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Techstep ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Techstep ASA is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Elliptic Laboratories and Techstep ASA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Elliptic Laboratories and Techstep ASA

The main advantage of trading using opposite Elliptic Laboratories and Techstep ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elliptic Laboratories position performs unexpectedly, Techstep 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 Techstep ASA will offset losses from the drop in Techstep ASA's long position.
The idea behind Elliptic Laboratories AS and Techstep ASA 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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