Correlation Between Broadwind and ORMAT TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both Broadwind 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 Broadwind and ORMAT TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadwind and ORMAT TECHNOLOGIES, you can compare the effects of market volatilities on Broadwind 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 Broadwind with a short position of ORMAT TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadwind and ORMAT TECHNOLOGIES.
Diversification Opportunities for Broadwind and ORMAT TECHNOLOGIES
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Broadwind and ORMAT is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Broadwind and ORMAT TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORMAT TECHNOLOGIES and Broadwind 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 Broadwind 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 Broadwind i.e., Broadwind and ORMAT TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Broadwind and ORMAT TECHNOLOGIES
Assuming the 90 days trading horizon Broadwind is expected to generate 1.32 times more return on investment than ORMAT TECHNOLOGIES. However, Broadwind is 1.32 times more volatile than ORMAT TECHNOLOGIES. It trades about 0.31 of its potential returns per unit of risk. ORMAT TECHNOLOGIES is currently generating about -0.25 per unit of risk. If you would invest 166.00 in Broadwind on October 9, 2024 and sell it today you would earn a total of 26.00 from holding Broadwind or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Broadwind vs. ORMAT TECHNOLOGIES
Performance |
| Timeline |
| Broadwind |
| ORMAT TECHNOLOGIES |
Broadwind and ORMAT TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadwind and ORMAT TECHNOLOGIES
The main advantage of trading using opposite Broadwind and ORMAT TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadwind 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.| Broadwind vs. SOEDER SPORTFISKE AB | Broadwind vs. PARKEN Sport Entertainment | Broadwind vs. Columbia Sportswear | Broadwind vs. Uber Technologies |
| ORMAT TECHNOLOGIES vs. UNIVMUSIC GRPADR050 | ORMAT TECHNOLOGIES vs. RYMAN HEALTHCAR | ORMAT TECHNOLOGIES vs. CARDINAL HEALTH | ORMAT TECHNOLOGIES vs. TOWNSQUARE MEDIA 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |