Correlation Between B Yair and Infimer
Can any of the company-specific risk be diversified away by investing in both B Yair and Infimer 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 Yair and Infimer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B Yair Building and Infimer, you can compare the effects of market volatilities on B Yair and Infimer 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 Yair with a short position of Infimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Yair and Infimer.
Diversification Opportunities for B Yair and Infimer
Very weak diversification
The 3 months correlation between BYAR and Infimer is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding B Yair Building and Infimer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infimer and B Yair 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 Yair Building are associated (or correlated) with Infimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infimer has no effect on the direction of B Yair i.e., B Yair and Infimer go up and down completely randomly.
Pair Corralation between B Yair and Infimer
Assuming the 90 days trading horizon B Yair Building is expected to generate 0.17 times more return on investment than Infimer. However, B Yair Building is 5.74 times less risky than Infimer. It trades about -0.23 of its potential returns per unit of risk. Infimer is currently generating about -0.14 per unit of risk. If you would invest 124,000 in B Yair Building on November 29, 2024 and sell it today you would lose (14,000) from holding B Yair Building or give up 11.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
B Yair Building vs. Infimer
Performance |
| Timeline |
| B Yair Building |
| Infimer |
B Yair and Infimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Yair and Infimer
The main advantage of trading using opposite B Yair and Infimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Yair position performs unexpectedly, Infimer 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 Infimer will offset losses from the drop in Infimer's long position.| B Yair vs. Sarine Technologies | B Yair vs. WhiteSmoke Software | B Yair vs. Spuntech | B Yair vs. Shagrir Group Vehicle |
| Infimer vs. Computer Direct | Infimer vs. Feat Fund Investments | Infimer vs. Petrochemical | Infimer vs. Rapac Communication Infrastructure |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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