Correlation Between Eltek and Zebra Technologies
Can any of the company-specific risk be diversified away by investing in both Eltek and Zebra Technologies 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 Zebra Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eltek and Zebra Technologies, you can compare the effects of market volatilities on Eltek and Zebra Technologies 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 Zebra Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eltek and Zebra Technologies.
Diversification Opportunities for Eltek and Zebra Technologies
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eltek and Zebra is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eltek and Zebra Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zebra Technologies 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 Zebra Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zebra Technologies has no effect on the direction of Eltek i.e., Eltek and Zebra Technologies go up and down completely randomly.
Pair Corralation between Eltek and Zebra Technologies
Given the investment horizon of 90 days Eltek is expected to generate 8.3 times less return on investment than Zebra Technologies. But when comparing it to its historical volatility, Eltek is 1.27 times less risky than Zebra Technologies. It trades about 0.01 of its potential returns per unit of risk. Zebra Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 29,250 in Zebra Technologies on May 29, 2025 and sell it today you would earn a total of 2,808 from holding Zebra Technologies or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eltek vs. Zebra Technologies
Performance |
| Timeline |
| Eltek |
| Zebra Technologies |
Eltek and Zebra Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eltek and Zebra Technologies
The main advantage of trading using opposite Eltek and Zebra Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eltek position performs unexpectedly, Zebra Technologies 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 Zebra Technologies will offset losses from the drop in Zebra Technologies' long position.| Eltek vs. Bel Fuse A | Eltek vs. BOS Better Online | Eltek vs. Electro Sensors | Eltek vs. MicroCloud Hologram |
| Zebra Technologies vs. Arista Networks | Zebra Technologies vs. Ciena Corp | Zebra Technologies vs. HubSpot | Zebra Technologies vs. Lumentum 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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