Correlation Between Analyst IMS and Hod Assaf
Can any of the company-specific risk be diversified away by investing in both Analyst IMS and Hod Assaf 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 Hod Assaf 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 Hod Assaf Industries, you can compare the effects of market volatilities on Analyst IMS and Hod Assaf 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 Hod Assaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analyst IMS and Hod Assaf.
Diversification Opportunities for Analyst IMS and Hod Assaf
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Analyst and Hod is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Analyst IMS Investment and Hod Assaf Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hod Assaf 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 Hod Assaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hod Assaf Industries has no effect on the direction of Analyst IMS i.e., Analyst IMS and Hod Assaf go up and down completely randomly.
Pair Corralation between Analyst IMS and Hod Assaf
Assuming the 90 days trading horizon Analyst IMS is expected to generate 2.74 times less return on investment than Hod Assaf. But when comparing it to its historical volatility, Analyst IMS Investment is 4.13 times less risky than Hod Assaf. It trades about 0.48 of its potential returns per unit of risk. Hod Assaf Industries is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 389,900 in Hod Assaf Industries on September 1, 2024 and sell it today you would earn a total of 90,800 from holding Hod Assaf Industries or generate 23.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Analyst IMS Investment vs. Hod Assaf Industries
Performance |
| Timeline |
| Analyst IMS Investment |
| Hod Assaf Industries |
Analyst IMS and Hod Assaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analyst IMS and Hod Assaf
The main advantage of trading using opposite Analyst IMS and Hod Assaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analyst IMS position performs unexpectedly, Hod Assaf 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 Hod Assaf will offset losses from the drop in Hod Assaf's long position.| Analyst IMS vs. TAT Technologies | Analyst IMS vs. Clal Biotechnology Industries | Analyst IMS vs. Spuntech | Analyst IMS vs. Elbit Medical Technologies |
| Hod Assaf vs. Amir Marketing and | Hod Assaf vs. Delek Automotive Systems | Hod Assaf vs. Brimag L | Hod Assaf vs. Oil Refineries |
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 CEOs Directory module to screen CEOs from public companies around the world.
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