Correlation Between E L and Yangaroo
Can any of the company-specific risk be diversified away by investing in both E L and Yangaroo 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 Yangaroo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E L Financial 3 and Yangaroo, you can compare the effects of market volatilities on E L and Yangaroo 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 Yangaroo. Check out your portfolio center. Please also check ongoing floating volatility patterns of E L and Yangaroo.
Diversification Opportunities for E L and Yangaroo
Very good diversification
The 3 months correlation between ELF-PH and Yangaroo is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding E L Financial 3 and Yangaroo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangaroo 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 3 are associated (or correlated) with Yangaroo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangaroo has no effect on the direction of E L i.e., E L and Yangaroo go up and down completely randomly.
Pair Corralation between E L and Yangaroo
Assuming the 90 days trading horizon E L Financial 3 is expected to generate 0.15 times more return on investment than Yangaroo. However, E L Financial 3 is 6.67 times less risky than Yangaroo. It trades about 0.14 of its potential returns per unit of risk. Yangaroo is currently generating about -0.06 per unit of risk. If you would invest 2,366 in E L Financial 3 on August 31, 2025 and sell it today you would earn a total of 104.00 from holding E L Financial 3 or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E L Financial 3 vs. Yangaroo
Performance |
| Timeline |
| E L Financial |
| Yangaroo |
E L and Yangaroo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E L and Yangaroo
The main advantage of trading using opposite E L and Yangaroo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E L position performs unexpectedly, Yangaroo 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 Yangaroo will offset losses from the drop in Yangaroo's long position.| E L vs. Northstar Clean Technologies | E L vs. WonderFi Technologies | E L vs. InPlay Oil Corp | E L vs. Uniserve Communications Corp |
| Yangaroo vs. Advent Wireless | Yangaroo vs. Dream Office Real | Yangaroo vs. DGL Investments No1 | Yangaroo vs. Uniserve Communications 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |