Correlation Between Analyst IMS and C Mer
Can any of the company-specific risk be diversified away by investing in both Analyst IMS and C Mer 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 Analyst IMS and C Mer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analyst IMS Investment and C Mer Industries, you can compare the effects of market volatilities on Analyst IMS and C Mer 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 Analyst IMS with a short position of C Mer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analyst IMS and C Mer.
Diversification Opportunities for Analyst IMS and C Mer
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Analyst and CMER is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Analyst IMS Investment and C Mer Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Mer Industries and Analyst IMS 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 Analyst IMS Investment are associated (or correlated) with C Mer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Mer Industries has no effect on the direction of Analyst IMS i.e., Analyst IMS and C Mer go up and down completely randomly.
Pair Corralation between Analyst IMS and C Mer
Assuming the 90 days trading horizon Analyst IMS is expected to generate 3.25 times less return on investment than C Mer. But when comparing it to its historical volatility, Analyst IMS Investment is 2.69 times less risky than C Mer. It trades about 0.1 of its potential returns per unit of risk. C Mer Industries is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 49,400 in C Mer Industries on September 13, 2024 and sell it today you would earn a total of 219,300 from holding C Mer Industries or generate 443.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analyst IMS Investment vs. C Mer Industries
Performance |
| Timeline |
| Analyst IMS Investment |
| C Mer Industries |
Analyst IMS and C Mer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analyst IMS and C Mer
The main advantage of trading using opposite Analyst IMS and C Mer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analyst IMS position performs unexpectedly, C Mer 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 C Mer will offset losses from the drop in C Mer's long position.| Analyst IMS vs. Bank Hapoalim | Analyst IMS vs. Israel Discount Bank | Analyst IMS vs. Mizrahi Tefahot | Analyst IMS vs. Bezeq Israeli Telecommunication |
| C Mer vs. Analyst IMS Investment | C Mer vs. Millennium Food Tech LP | C Mer vs. Adgar Investments and | C Mer vs. MEITAV INVESTMENTS HOUSE |
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 | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |