Correlation Between Capital Point and Fattal 1998
Can any of the company-specific risk be diversified away by investing in both Capital Point and Fattal 1998 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 Capital Point and Fattal 1998 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Point and Fattal 1998 Holdings, you can compare the effects of market volatilities on Capital Point and Fattal 1998 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 Capital Point with a short position of Fattal 1998. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Point and Fattal 1998.
Diversification Opportunities for Capital Point and Fattal 1998
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Capital and Fattal is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Capital Point and Fattal 1998 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fattal 1998 Holdings and Capital Point 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 Capital Point are associated (or correlated) with Fattal 1998. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fattal 1998 Holdings has no effect on the direction of Capital Point i.e., Capital Point and Fattal 1998 go up and down completely randomly.
Pair Corralation between Capital Point and Fattal 1998
Assuming the 90 days trading horizon Capital Point is expected to under-perform the Fattal 1998. But the stock apears to be less risky and, when comparing its historical volatility, Capital Point is 2.27 times less risky than Fattal 1998. The stock trades about -0.1 of its potential returns per unit of risk. The Fattal 1998 Holdings is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 4,360,000 in Fattal 1998 Holdings on August 25, 2024 and sell it today you would earn a total of 660,000 from holding Fattal 1998 Holdings or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Point vs. Fattal 1998 Holdings
Performance |
| Timeline |
| Capital Point |
| Fattal 1998 Holdings |
Capital Point and Fattal 1998 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Point and Fattal 1998
The main advantage of trading using opposite Capital Point and Fattal 1998 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Point position performs unexpectedly, Fattal 1998 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 Fattal 1998 will offset losses from the drop in Fattal 1998's long position.| Capital Point vs. IDI Insurance | Capital Point vs. Eldav L | Capital Point vs. Migdal Insurance | Capital Point vs. Mivtach Shamir |
| Fattal 1998 vs. Delek Group | Fattal 1998 vs. El Al Israel | Fattal 1998 vs. Bank Leumi Le Israel | Fattal 1998 vs. Azrieli Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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