Correlation Between Beazley PLC and ORMAT TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both Beazley PLC and ORMAT 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 Beazley PLC and ORMAT TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beazley PLC and ORMAT TECHNOLOGIES, you can compare the effects of market volatilities on Beazley PLC and ORMAT 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 Beazley PLC with a short position of ORMAT TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beazley PLC and ORMAT TECHNOLOGIES.
Diversification Opportunities for Beazley PLC and ORMAT TECHNOLOGIES
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beazley and ORMAT is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Beazley PLC and ORMAT TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORMAT TECHNOLOGIES and Beazley PLC 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 Beazley PLC are associated (or correlated) with ORMAT TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORMAT TECHNOLOGIES has no effect on the direction of Beazley PLC i.e., Beazley PLC and ORMAT TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Beazley PLC and ORMAT TECHNOLOGIES
Assuming the 90 days horizon Beazley PLC is expected to generate 1.51 times more return on investment than ORMAT TECHNOLOGIES. However, Beazley PLC is 1.51 times more volatile than ORMAT TECHNOLOGIES. It trades about 0.04 of its potential returns per unit of risk. ORMAT TECHNOLOGIES is currently generating about 0.0 per unit of risk. If you would invest 722.00 in Beazley PLC on September 12, 2024 and sell it today you would earn a total of 273.00 from holding Beazley PLC or generate 37.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beazley PLC vs. ORMAT TECHNOLOGIES
Performance |
| Timeline |
| Beazley PLC |
| ORMAT TECHNOLOGIES |
Beazley PLC and ORMAT TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beazley PLC and ORMAT TECHNOLOGIES
The main advantage of trading using opposite Beazley PLC and ORMAT TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beazley PLC position performs unexpectedly, ORMAT 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 ORMAT TECHNOLOGIES will offset losses from the drop in ORMAT TECHNOLOGIES's long position.| Beazley PLC vs. The Peoples Insurance | Beazley PLC vs. W R Berkley | Beazley PLC vs. The Hanover Insurance | Beazley PLC vs. ZhongAn Online P |
| ORMAT TECHNOLOGIES vs. Apple Inc | ORMAT TECHNOLOGIES vs. Apple Inc | ORMAT TECHNOLOGIES vs. Apple Inc | ORMAT TECHNOLOGIES vs. Apple Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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