Correlation Between Eltek and Global Self
Can any of the company-specific risk be diversified away by investing in both Eltek and Global Self 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 Global Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eltek and Global Self Storage, you can compare the effects of market volatilities on Eltek and Global Self 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 Global Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eltek and Global Self.
Diversification Opportunities for Eltek and Global Self
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eltek and Global is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and Global Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Self Storage 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 Global Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Self Storage has no effect on the direction of Eltek i.e., Eltek and Global Self go up and down completely randomly.
Pair Corralation between Eltek and Global Self
Given the investment horizon of 90 days Eltek is expected to generate 1.31 times more return on investment than Global Self. However, Eltek is 1.31 times more volatile than Global Self Storage. It trades about 0.18 of its potential returns per unit of risk. Global Self Storage is currently generating about 0.08 per unit of risk. If you would invest 1,114 in Eltek on August 15, 2025 and sell it today you would earn a total of 41.00 from holding Eltek or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eltek vs. Global Self Storage
Performance |
| Timeline |
| Eltek |
| Global Self Storage |
Eltek and Global Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eltek and Global Self
The main advantage of trading using opposite Eltek and Global Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eltek position performs unexpectedly, Global Self 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 Global Self will offset losses from the drop in Global Self's long position.The idea behind Eltek and Global Self Storage 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.| Global Self vs. Sachem Capital Corp | Global Self vs. Sachem Capital Corp | Global Self vs. Manhattan Bridge Capital | Global Self vs. Fathom Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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