Correlation Between B Communications and Jacob Finance
Can any of the company-specific risk be diversified away by investing in both B Communications and Jacob Finance 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 Jacob Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Communications and Jacob Finance And, you can compare the effects of market volatilities on B Communications and Jacob Finance 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 Jacob Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Communications and Jacob Finance.
Diversification Opportunities for B Communications and Jacob Finance
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BCOM and Jacob is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding B Communications and Jacob Finance And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Finance And 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 Jacob Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Finance And has no effect on the direction of B Communications i.e., B Communications and Jacob Finance go up and down completely randomly.
Pair Corralation between B Communications and Jacob Finance
Assuming the 90 days trading horizon B Communications is expected to generate 0.72 times more return on investment than Jacob Finance. However, B Communications is 1.38 times less risky than Jacob Finance. It trades about 0.16 of its potential returns per unit of risk. Jacob Finance And is currently generating about 0.11 per unit of risk. If you would invest 191,600 in B Communications on December 1, 2024 and sell it today you would earn a total of 8,400 from holding B Communications or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
B Communications vs. Jacob Finance And
Performance |
| Timeline |
| B Communications |
| Jacob Finance And |
B Communications and Jacob Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Communications and Jacob Finance
The main advantage of trading using opposite B Communications and Jacob Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Communications position performs unexpectedly, Jacob Finance 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 Jacob Finance will offset losses from the drop in Jacob Finance's long position.| B Communications vs. Bezeq Israeli Telecommunication | B Communications vs. Partner | B Communications vs. Cellcom Israel | B Communications vs. Tower Semiconductor |
| Jacob Finance vs. Michman Basad | Jacob Finance vs. Isracard | Jacob Finance vs. Nawi Brothers Group | Jacob Finance vs. Menif Financial Services |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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