Correlation Between Russell Investments and E L
Can any of the company-specific risk be diversified away by investing in both Russell Investments and E L 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 Russell Investments and E L into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Russell Investments Global and E L Financial Corp, you can compare the effects of market volatilities on Russell Investments and E L 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 Russell Investments with a short position of E L. Check out your portfolio center. Please also check ongoing floating volatility patterns of Russell Investments and E L.
Diversification Opportunities for Russell Investments and E L
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Russell and ELF-PF is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Russell Investments Global and E L Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E L Financial and Russell Investments 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 Russell Investments Global are associated (or correlated) with E L. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E L Financial has no effect on the direction of Russell Investments i.e., Russell Investments and E L go up and down completely randomly.
Pair Corralation between Russell Investments and E L
Assuming the 90 days trading horizon Russell Investments Global is expected to generate 3.64 times more return on investment than E L. However, Russell Investments is 3.64 times more volatile than E L Financial Corp. It trades about 0.12 of its potential returns per unit of risk. E L Financial Corp is currently generating about 0.09 per unit of risk. If you would invest 2,328 in Russell Investments Global on August 18, 2025 and sell it today you would earn a total of 261.00 from holding Russell Investments Global or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Russell Investments Global vs. E L Financial Corp
Performance |
| Timeline |
| Russell Investments |
| E L Financial |
Russell Investments and E L Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Russell Investments and E L
The main advantage of trading using opposite Russell Investments and E L positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Russell Investments position performs unexpectedly, E L 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 E L will offset losses from the drop in E L's long position.| Russell Investments vs. NVIDIA CDR | Russell Investments vs. Apple Inc CDR | Russell Investments vs. Microsoft Corp CDR | Russell Investments vs. Alphabet Inc CDR |
| E L vs. DIRTT Environmental Solutions | E L vs. Upstart Investments | E L vs. Highwood Asset Management | E L vs. Canadian General Investments |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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