Correlation Between Bet Shemesh and Issta Lines
Can any of the company-specific risk be diversified away by investing in both Bet Shemesh and Issta Lines 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 Issta Lines 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 Issta Lines, you can compare the effects of market volatilities on Bet Shemesh and Issta Lines 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 Issta Lines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet Shemesh and Issta Lines.
Diversification Opportunities for Bet Shemesh and Issta Lines
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bet and Issta is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bet Shemesh Engines and Issta Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issta Lines 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 Issta Lines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issta Lines has no effect on the direction of Bet Shemesh i.e., Bet Shemesh and Issta Lines go up and down completely randomly.
Pair Corralation between Bet Shemesh and Issta Lines
Assuming the 90 days trading horizon Bet Shemesh Engines is expected to generate 1.15 times more return on investment than Issta Lines. However, Bet Shemesh is 1.15 times more volatile than Issta Lines. It trades about 0.13 of its potential returns per unit of risk. Issta Lines is currently generating about 0.02 per unit of risk. If you would invest 684,064 in Bet Shemesh Engines on September 14, 2024 and sell it today you would earn a total of 2,194,936 from holding Bet Shemesh Engines or generate 320.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Bet Shemesh Engines vs. Issta Lines
Performance |
| Timeline |
| Bet Shemesh Engines |
| Issta Lines |
Bet Shemesh and Issta Lines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet Shemesh and Issta Lines
The main advantage of trading using opposite Bet Shemesh and Issta Lines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet Shemesh position performs unexpectedly, Issta Lines 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 Issta Lines will offset losses from the drop in Issta Lines' long position.| Bet Shemesh vs. Aran Research and | Bet Shemesh vs. Al Bad Massuot Yitzhak | Bet Shemesh vs. Analyst IMS Investment | Bet Shemesh vs. Golan Plastic |
| Issta Lines vs. Fattal 1998 Holdings | Issta Lines vs. Israel Discount Bank | Issta Lines vs. Azrieli Group | Issta Lines vs. Shufersal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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