Correlation Between B Yair and Sarine Technologies
Can any of the company-specific risk be diversified away by investing in both B Yair and Sarine Technologies 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 Sarine Technologies 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 Sarine Technologies, you can compare the effects of market volatilities on B Yair and Sarine Technologies 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 Sarine Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of B Yair and Sarine Technologies.
Diversification Opportunities for B Yair and Sarine Technologies
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BYAR and Sarine is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding B Yair Building and Sarine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarine Technologies 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 Sarine Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarine Technologies has no effect on the direction of B Yair i.e., B Yair and Sarine Technologies go up and down completely randomly.
Pair Corralation between B Yair and Sarine Technologies
Assuming the 90 days trading horizon B Yair Building is expected to generate 2.27 times more return on investment than Sarine Technologies. However, B Yair is 2.27 times more volatile than Sarine Technologies. It trades about 0.01 of its potential returns per unit of risk. Sarine Technologies is currently generating about -0.03 per unit of risk. If you would invest 122,800 in B Yair Building on September 3, 2024 and sell it today you would lose (15,200) from holding B Yair Building or give up 12.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
B Yair Building vs. Sarine Technologies
Performance |
| Timeline |
| B Yair Building |
| Sarine Technologies |
B Yair and Sarine Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B Yair and Sarine Technologies
The main advantage of trading using opposite B Yair and Sarine Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B Yair position performs unexpectedly, Sarine Technologies 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 Sarine Technologies will offset losses from the drop in Sarine Technologies' long position.| B Yair vs. Ram On Investments and | B Yair vs. Scope Metals Group | B Yair vs. Israel China Biotechnology | B Yair vs. One Software Technologies |
| Sarine Technologies vs. Magic Software Enterprises | Sarine Technologies vs. B Yair Building | Sarine Technologies vs. Orbit Technologies | Sarine Technologies vs. Iargento Hi Tech |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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