Correlation Between B Communications and Brack Capit
Can any of the company-specific risk be diversified away by investing in both B Communications and Brack Capit 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 B Communications and Brack Capit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Communications and Brack Capit N, you can compare the effects of market volatilities on B Communications and Brack Capit 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 B Communications with a short position of Brack Capit. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Communications and Brack Capit.
Diversification Opportunities for B Communications and Brack Capit
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BCOM and Brack is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding B Communications and Brack Capit N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brack Capit N and B Communications 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 B Communications are associated (or correlated) with Brack Capit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brack Capit N has no effect on the direction of B Communications i.e., B Communications and Brack Capit go up and down completely randomly.
Pair Corralation between B Communications and Brack Capit
Assuming the 90 days trading horizon B Communications is expected to generate 4.29 times more return on investment than Brack Capit. However, B Communications is 4.29 times more volatile than Brack Capit N. It trades about 0.36 of its potential returns per unit of risk. Brack Capit N is currently generating about 0.02 per unit of risk. If you would invest 113,000 in B Communications on September 12, 2024 and sell it today you would earn a total of 63,400 from holding B Communications or generate 56.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.83% |
| Values | Daily Returns |
B Communications vs. Brack Capit N
Performance |
| Timeline |
| B Communications |
| Brack Capit N |
B Communications and Brack Capit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Communications and Brack Capit
The main advantage of trading using opposite B Communications and Brack Capit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Communications position performs unexpectedly, Brack Capit 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 Brack Capit will offset losses from the drop in Brack Capit's long position.| B Communications vs. Bezeq Israeli Telecommunication | B Communications vs. Tower Semiconductor | B Communications vs. Israel Discount Bank | B Communications vs. Photomyne |
| Brack Capit vs. RSL Electronics | Brack Capit vs. One Software Technologies | Brack Capit vs. B Communications | Brack Capit vs. YH Dimri Construction |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance |