Correlation Between Bio Meat and Holmes Place
Can any of the company-specific risk be diversified away by investing in both Bio Meat and Holmes Place 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 Bio Meat and Holmes Place into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio Meat Foodtech and Holmes Place International, you can compare the effects of market volatilities on Bio Meat and Holmes Place 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 Bio Meat with a short position of Holmes Place. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Meat and Holmes Place.
Diversification Opportunities for Bio Meat and Holmes Place
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bio and Holmes is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bio Meat Foodtech and Holmes Place International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holmes Place Interna and Bio Meat 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 Bio Meat Foodtech are associated (or correlated) with Holmes Place. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holmes Place Interna has no effect on the direction of Bio Meat i.e., Bio Meat and Holmes Place go up and down completely randomly.
Pair Corralation between Bio Meat and Holmes Place
Assuming the 90 days trading horizon Bio Meat Foodtech is expected to under-perform the Holmes Place. In addition to that, Bio Meat is 11.97 times more volatile than Holmes Place International. It trades about -0.19 of its total potential returns per unit of risk. Holmes Place International is currently generating about 0.41 per unit of volatility. If you would invest 63,000 in Holmes Place International on November 27, 2024 and sell it today you would earn a total of 2,500 from holding Holmes Place International or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bio Meat Foodtech vs. Holmes Place International
Performance |
| Timeline |
| Bio Meat Foodtech |
| Holmes Place Interna |
Bio Meat and Holmes Place Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio Meat and Holmes Place
The main advantage of trading using opposite Bio Meat and Holmes Place positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Meat position performs unexpectedly, Holmes Place 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 Holmes Place will offset losses from the drop in Holmes Place's long position.| Bio Meat vs. Dan Hotels | Bio Meat vs. Sure Tech Investments LP | Bio Meat vs. Adgar Investments and | Bio Meat vs. Teuza A Fairchild |
| Holmes Place vs. Fattal 1998 Holdings | Holmes Place vs. Delek Group | Holmes Place vs. Bank Leumi Le Israel | Holmes Place vs. Matrix |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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