Correlation Between Eltek and Henry Schein
Can any of the company-specific risk be diversified away by investing in both Eltek and Henry Schein 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 Eltek and Henry Schein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eltek and Henry Schein, you can compare the effects of market volatilities on Eltek and Henry Schein 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 Eltek with a short position of Henry Schein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eltek and Henry Schein.
Diversification Opportunities for Eltek and Henry Schein
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eltek and Henry is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and Henry Schein in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henry Schein and Eltek 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 Eltek are associated (or correlated) with Henry Schein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henry Schein has no effect on the direction of Eltek i.e., Eltek and Henry Schein go up and down completely randomly.
Pair Corralation between Eltek and Henry Schein
Given the investment horizon of 90 days Eltek is expected to generate 1.01 times more return on investment than Henry Schein. However, Eltek is 1.01 times more volatile than Henry Schein. It trades about 0.02 of its potential returns per unit of risk. Henry Schein is currently generating about -0.01 per unit of risk. If you would invest 994.00 in Eltek on June 9, 2025 and sell it today you would earn a total of 15.00 from holding Eltek or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eltek vs. Henry Schein
Performance |
| Timeline |
| Eltek |
| Henry Schein |
Eltek and Henry Schein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eltek and Henry Schein
The main advantage of trading using opposite Eltek and Henry Schein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eltek position performs unexpectedly, Henry Schein 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 Henry Schein will offset losses from the drop in Henry Schein's long position.| Eltek vs. Bel Fuse A | Eltek vs. BOS Better Online | Eltek vs. Electro Sensors | Eltek vs. MicroCloud Hologram |
| Henry Schein vs. Owens Minor | Henry Schein vs. Cencora | Henry Schein vs. Cardinal Health | Henry Schein vs. McKesson |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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