Correlation Between Abra Information and Wesure Global
Can any of the company-specific risk be diversified away by investing in both Abra Information and Wesure Global 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 Wesure Global 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 Wesure Global Tech, you can compare the effects of market volatilities on Abra Information and Wesure Global 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 Wesure Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abra Information and Wesure Global.
Diversification Opportunities for Abra Information and Wesure Global
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Abra and Wesure is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Abra Information Technologies and Wesure Global Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesure Global Tech 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 Wesure Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesure Global Tech has no effect on the direction of Abra Information i.e., Abra Information and Wesure Global go up and down completely randomly.
Pair Corralation between Abra Information and Wesure Global
Assuming the 90 days trading horizon Abra Information is expected to generate 7.89 times less return on investment than Wesure Global. But when comparing it to its historical volatility, Abra Information Technologies is 1.15 times less risky than Wesure Global. It trades about 0.06 of its potential returns per unit of risk. Wesure Global Tech is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 30,820 in Wesure Global Tech on August 30, 2024 and sell it today you would earn a total of 18,920 from holding Wesure Global Tech or generate 61.39% 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. Wesure Global Tech
Performance |
| Timeline |
| Abra Information Tec |
| Wesure Global Tech |
Abra Information and Wesure Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abra Information and Wesure Global
The main advantage of trading using opposite Abra Information and Wesure Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abra Information position performs unexpectedly, Wesure Global 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 Wesure Global will offset losses from the drop in Wesure Global's long position.| Abra Information vs. Harel Insurance Investments | Abra Information vs. Silver Castle Holdings | Abra Information vs. MEITAV INVESTMENTS HOUSE | Abra Information vs. Isras Investment |
| Wesure Global vs. YD More Investments | Wesure Global vs. Analyst IMS Investment | Wesure Global vs. IDI Insurance | Wesure Global vs. Israel Discount Bank |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| 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 | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |