Correlation Between Aerodrome and Feat Fund
Can any of the company-specific risk be diversified away by investing in both Aerodrome and Feat Fund 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 Aerodrome and Feat Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerodrome Group and Feat Fund Investments, you can compare the effects of market volatilities on Aerodrome and Feat Fund 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 Aerodrome with a short position of Feat Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerodrome and Feat Fund.
Diversification Opportunities for Aerodrome and Feat Fund
Average diversification
The 3 months correlation between Aerodrome and Feat is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aerodrome Group and Feat Fund Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feat Fund Investments and Aerodrome 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 Aerodrome Group are associated (or correlated) with Feat Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feat Fund Investments has no effect on the direction of Aerodrome i.e., Aerodrome and Feat Fund go up and down completely randomly.
Pair Corralation between Aerodrome and Feat Fund
Assuming the 90 days trading horizon Aerodrome Group is expected to generate 1.66 times more return on investment than Feat Fund. However, Aerodrome is 1.66 times more volatile than Feat Fund Investments. It trades about 0.04 of its potential returns per unit of risk. Feat Fund Investments is currently generating about 0.01 per unit of risk. If you would invest 5,430 in Aerodrome Group on September 3, 2024 and sell it today you would earn a total of 2,170 from holding Aerodrome Group or generate 39.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerodrome Group vs. Feat Fund Investments
Performance |
| Timeline |
| Aerodrome Group |
| Feat Fund Investments |
Aerodrome and Feat Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerodrome and Feat Fund
The main advantage of trading using opposite Aerodrome and Feat Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerodrome position performs unexpectedly, Feat Fund 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 Feat Fund will offset losses from the drop in Feat Fund's long position.| Aerodrome vs. Kvasir Education | Aerodrome vs. ICL Israel Chemicals | Aerodrome vs. Amanet Management Systems | Aerodrome vs. Meitav Trade Inv |
| Feat Fund vs. Bezeq Israeli Telecommunication | Feat Fund vs. Arad Investment Industrial | Feat Fund vs. Hiron Trade Investments Industrial | Feat Fund vs. Imed Infinity Medical Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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