Correlation Between Black Sea and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Black Sea 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 Black Sea and Elbit Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Sea Property and Elbit Imaging, you can compare the effects of market volatilities on Black Sea 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 Black Sea with a short position of Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Sea and Elbit Imaging.
Diversification Opportunities for Black Sea and Elbit Imaging
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Black and Elbit is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Black Sea Property and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging and Black Sea 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 Black Sea Property 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 Black Sea i.e., Black Sea and Elbit Imaging go up and down completely randomly.
Pair Corralation between Black Sea and Elbit Imaging
Assuming the 90 days trading horizon Black Sea is expected to generate 1.2 times less return on investment than Elbit Imaging. In addition to that, Black Sea is 1.26 times more volatile than Elbit Imaging. It trades about 0.14 of its total potential returns per unit of risk. Elbit Imaging is currently generating about 0.2 per unit of volatility. If you would invest 60,000 in Elbit Imaging on November 3, 2024 and sell it today you would earn a total of 14,000 from holding Elbit Imaging or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Black Sea Property vs. Elbit Imaging
Performance |
| Timeline |
| Black Sea Property |
| Elbit Imaging |
Black Sea and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Sea and Elbit Imaging
The main advantage of trading using opposite Black Sea and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Sea 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.| Black Sea vs. Technoplus Ventures | Black Sea vs. Unicorn Technologies | Black Sea vs. Nrgene Technologies | Black Sea vs. Abra Information Technologies |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |