Correlation Between Bet Shemesh and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Bet Shemesh and Elbit Imaging 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 Bet Shemesh and Elbit Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bet Shemesh Engines and Elbit Imaging, you can compare the effects of market volatilities on Bet Shemesh and Elbit Imaging 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 Bet Shemesh with a short position of Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet Shemesh and Elbit Imaging.
Diversification Opportunities for Bet Shemesh and Elbit Imaging
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bet and Elbit is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bet Shemesh Engines and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging and Bet Shemesh 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 Bet Shemesh Engines are associated (or correlated) with Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of Bet Shemesh i.e., Bet Shemesh and Elbit Imaging go up and down completely randomly.
Pair Corralation between Bet Shemesh and Elbit Imaging
Assuming the 90 days trading horizon Bet Shemesh Engines is expected to generate 0.44 times more return on investment than Elbit Imaging. However, Bet Shemesh Engines is 2.3 times less risky than Elbit Imaging. It trades about 0.57 of its potential returns per unit of risk. Elbit Imaging is currently generating about 0.2 per unit of risk. If you would invest 3,140,000 in Bet Shemesh Engines on November 3, 2024 and sell it today you would earn a total of 1,040,000 from holding Bet Shemesh Engines or generate 33.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bet Shemesh Engines vs. Elbit Imaging
Performance |
| Timeline |
| Bet Shemesh Engines |
| Elbit Imaging |
Bet Shemesh and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet Shemesh and Elbit Imaging
The main advantage of trading using opposite Bet Shemesh and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet Shemesh position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.| Bet Shemesh vs. Danel | Bet Shemesh vs. Hilan | Bet Shemesh vs. Fattal 1998 Holdings | Bet Shemesh vs. Elbit Systems |
| Elbit Imaging vs. Abra Information Technologies | Elbit Imaging vs. Clal Insurance Enterprises | Elbit Imaging vs. Electreon Wireless | Elbit Imaging vs. Analyst IMS Investment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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