Correlation Between Aura Investments and Edri El
Can any of the company-specific risk be diversified away by investing in both Aura Investments and Edri El 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 Aura Investments and Edri El into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aura Investments and Edri El, you can compare the effects of market volatilities on Aura Investments and Edri El 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 Aura Investments with a short position of Edri El. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aura Investments and Edri El.
Diversification Opportunities for Aura Investments and Edri El
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aura and Edri is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aura Investments and Edri El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edri El and Aura Investments 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 Aura Investments are associated (or correlated) with Edri El. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edri El has no effect on the direction of Aura Investments i.e., Aura Investments and Edri El go up and down completely randomly.
Pair Corralation between Aura Investments and Edri El
Assuming the 90 days trading horizon Aura Investments is expected to generate 0.37 times more return on investment than Edri El. However, Aura Investments is 2.7 times less risky than Edri El. It trades about 0.14 of its potential returns per unit of risk. Edri El is currently generating about 0.01 per unit of risk. If you would invest 58,710 in Aura Investments on October 25, 2024 and sell it today you would earn a total of 185,090 from holding Aura Investments or generate 315.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aura Investments vs. Edri El
Performance |
| Timeline |
| Aura Investments |
| Edri El |
Aura Investments and Edri El Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aura Investments and Edri El
The main advantage of trading using opposite Aura Investments and Edri El positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aura Investments position performs unexpectedly, Edri El 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 Edri El will offset losses from the drop in Edri El's long position.| Aura Investments vs. Azrieli Group | Aura Investments vs. Israel Canada | Aura Investments vs. Ashtrom Group | Aura Investments vs. Shikun Binui |
| Edri El vs. Oron Group Investments | Edri El vs. Petrochemical | Edri El vs. MEITAV INVESTMENTS HOUSE | Edri El vs. Inrom Construction Industries |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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