Correlation Between E L and UPS CDR
Can any of the company-specific risk be diversified away by investing in both E L and UPS CDR 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 E L and UPS CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E L Financial Corp and UPS CDR, you can compare the effects of market volatilities on E L and UPS CDR 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 E L with a short position of UPS CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of E L and UPS CDR.
Diversification Opportunities for E L and UPS CDR
Excellent diversification
The 3 months correlation between ELF-PF and UPS is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding E L Financial Corp and UPS CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPS CDR and E L 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 E L Financial Corp are associated (or correlated) with UPS CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPS CDR has no effect on the direction of E L i.e., E L and UPS CDR go up and down completely randomly.
Pair Corralation between E L and UPS CDR
Assuming the 90 days trading horizon E L Financial Corp is expected to generate 0.23 times more return on investment than UPS CDR. However, E L Financial Corp is 4.32 times less risky than UPS CDR. It trades about 0.16 of its potential returns per unit of risk. UPS CDR is currently generating about -0.12 per unit of risk. If you would invest 2,279 in E L Financial Corp on July 28, 2025 and sell it today you would earn a total of 97.00 from holding E L Financial Corp or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E L Financial Corp vs. UPS CDR
Performance |
| Timeline |
| E L Financial |
| UPS CDR |
E L and UPS CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E L and UPS CDR
The main advantage of trading using opposite E L and UPS CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E L position performs unexpectedly, UPS CDR 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 UPS CDR will offset losses from the drop in UPS CDR's long position.| E L vs. McEwen Mining | E L vs. Western Investment | E L vs. GoldQuest Mining Corp | E L vs. DGL Investments No1 |
| UPS CDR vs. North American Financial | UPS CDR vs. GoldQuest Mining Corp | UPS CDR vs. E L Financial Corp | UPS CDR vs. E L Financial Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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