Correlation Between Tempus AI, and Eltek

Can any of the company-specific risk be diversified away by investing in both Tempus AI, and Eltek 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 Tempus AI, and Eltek into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tempus AI, Class and Eltek, you can compare the effects of market volatilities on Tempus AI, and Eltek 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 Tempus AI, with a short position of Eltek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tempus AI, and Eltek.

Diversification Opportunities for Tempus AI, and Eltek

0.28

Correlation Coefficient

Tempus AI,  Eltek

Modest diversification

The 3 months correlation between Tempus and Eltek is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Tempus AI, Class and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek and Tempus AI, 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 Tempus AI, Class are associated (or correlated) with Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of Tempus AI, i.e., Tempus AI, and Eltek go up and down completely randomly.

Pair Corralation between Tempus AI, and Eltek

Considering the 90-day investment horizon Tempus AI, Class is expected to under-perform the Eltek. In addition to that, Tempus AI, is 1.89 times more volatile than Eltek. It trades about -0.26 of its total potential returns per unit of risk. Eltek is currently generating about 0.0 per unit of volatility. If you would invest  1,093  in Eltek on September 22, 2024 and sell it today you would lose (12.00) from holding Eltek or give up 1.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Tempus AI, Class  vs.  Eltek

Tempus AI, Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tempus AI, Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Eltek

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eltek are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Eltek is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Tempus AI, and Eltek

The main advantage of trading using opposite Tempus AI, and Eltek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tempus AI, position performs unexpectedly, Eltek 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 Eltek will offset losses from the drop in Eltek's long position.

The idea behind Tempus AI, Class and Eltek 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.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.