Correlation Between Abra Information and Tikun Olam
Can any of the company-specific risk be diversified away by investing in both Abra Information and Tikun Olam 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 Tikun Olam 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 Tikun Olam Cannbit, you can compare the effects of market volatilities on Abra Information and Tikun Olam 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 Tikun Olam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abra Information and Tikun Olam.
Diversification Opportunities for Abra Information and Tikun Olam
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Abra and Tikun is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Abra Information Technologies and Tikun Olam Cannbit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikun Olam Cannbit 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 Tikun Olam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tikun Olam Cannbit has no effect on the direction of Abra Information i.e., Abra Information and Tikun Olam go up and down completely randomly.
Pair Corralation between Abra Information and Tikun Olam
Assuming the 90 days trading horizon Abra Information Technologies is expected to generate 0.36 times more return on investment than Tikun Olam. However, Abra Information Technologies is 2.77 times less risky than Tikun Olam. It trades about 0.07 of its potential returns per unit of risk. Tikun Olam Cannbit is currently generating about 0.02 per unit of risk. If you would invest 30,810 in Abra Information Technologies on November 2, 2024 and sell it today you would earn a total of 2,030 from holding Abra Information Technologies or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abra Information Technologies vs. Tikun Olam Cannbit
Performance |
| Timeline |
| Abra Information Tec |
| Tikun Olam Cannbit |
Abra Information and Tikun Olam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abra Information and Tikun Olam
The main advantage of trading using opposite Abra Information and Tikun Olam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abra Information position performs unexpectedly, Tikun Olam 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 Tikun Olam will offset losses from the drop in Tikun Olam's long position.| Abra Information vs. G Willi Food International | Abra Information vs. Menif Financial Services | Abra Information vs. Suny Cellular Communication | Abra Information vs. Scope Metals Group |
| Tikun Olam vs. Analyst IMS Investment | Tikun Olam vs. Isras Investment | Tikun Olam vs. Rapac Communication Infrastructure | Tikun Olam vs. Sure Tech Investments LP |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |