Correlation Between Abra Information and Nice
Can any of the company-specific risk be diversified away by investing in both Abra Information and Nice 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 Abra Information and Nice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abra Information Technologies and Nice, you can compare the effects of market volatilities on Abra Information and Nice 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 Abra Information with a short position of Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abra Information and Nice.
Diversification Opportunities for Abra Information and Nice
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Abra and Nice is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Abra Information Technologies and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice and Abra Information 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 Abra Information Technologies are associated (or correlated) with Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Abra Information i.e., Abra Information and Nice go up and down completely randomly.
Pair Corralation between Abra Information and Nice
Assuming the 90 days trading horizon Abra Information Technologies is expected to generate 0.8 times more return on investment than Nice. However, Abra Information Technologies is 1.25 times less risky than Nice. It trades about 0.01 of its potential returns per unit of risk. Nice is currently generating about -0.02 per unit of risk. If you would invest 33,190 in Abra Information Technologies on November 27, 2024 and sell it today you would lose (190.00) from holding Abra Information Technologies or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abra Information Technologies vs. Nice
Performance |
| Timeline |
| Abra Information Tec |
| Nice |
Abra Information and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abra Information and Nice
The main advantage of trading using opposite Abra Information and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abra Information position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's long position.| Abra Information vs. Meitav Trade Inv | Abra Information vs. Bank Leumi Le Israel | Abra Information vs. Retailors | Abra Information vs. Terminal X Online |
| Nice vs. Elbit Systems | Nice vs. Tower Semiconductor | Nice vs. Bank Leumi Le Israel | Nice vs. Teva Pharmaceutical Industries |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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