Correlation Between YH Dimri and Blender Financial
Can any of the company-specific risk be diversified away by investing in both YH Dimri and Blender Financial 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 YH Dimri and Blender Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YH Dimri Construction and Blender Financial Technologies, you can compare the effects of market volatilities on YH Dimri and Blender Financial 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 YH Dimri with a short position of Blender Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of YH Dimri and Blender Financial.
Diversification Opportunities for YH Dimri and Blender Financial
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DIMRI and Blender is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding YH Dimri Construction and Blender Financial Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blender Financial and YH Dimri 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 YH Dimri Construction are associated (or correlated) with Blender Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blender Financial has no effect on the direction of YH Dimri i.e., YH Dimri and Blender Financial go up and down completely randomly.
Pair Corralation between YH Dimri and Blender Financial
Assuming the 90 days trading horizon YH Dimri Construction is expected to generate 0.69 times more return on investment than Blender Financial. However, YH Dimri Construction is 1.45 times less risky than Blender Financial. It trades about 0.26 of its potential returns per unit of risk. Blender Financial Technologies is currently generating about -0.34 per unit of risk. If you would invest 3,163,000 in YH Dimri Construction on August 29, 2024 and sell it today you would earn a total of 284,000 from holding YH Dimri Construction or generate 8.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YH Dimri Construction vs. Blender Financial Technologies
Performance |
| Timeline |
| YH Dimri Construction |
| Blender Financial |
YH Dimri and Blender Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YH Dimri and Blender Financial
The main advantage of trading using opposite YH Dimri and Blender Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YH Dimri position performs unexpectedly, Blender Financial 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 Blender Financial will offset losses from the drop in Blender Financial's long position.| YH Dimri vs. Azrieli Group | YH Dimri vs. Israel Canada | YH Dimri vs. Ashtrom Group | YH Dimri vs. Shikun Binui |
| Blender Financial vs. Wilk Technologies | Blender Financial vs. YH Dimri Construction | Blender Financial vs. Bezeq Israeli Telecommunication | Blender Financial vs. Teuza A Fairchild |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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