Correlation Between YH Dimri and Cannabotech
Can any of the company-specific risk be diversified away by investing in both YH Dimri and Cannabotech 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 Cannabotech 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 Cannabotech, you can compare the effects of market volatilities on YH Dimri and Cannabotech 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 Cannabotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of YH Dimri and Cannabotech.
Diversification Opportunities for YH Dimri and Cannabotech
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DIMRI and Cannabotech is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding YH Dimri Construction and Cannabotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabotech 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 Cannabotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabotech has no effect on the direction of YH Dimri i.e., YH Dimri and Cannabotech go up and down completely randomly.
Pair Corralation between YH Dimri and Cannabotech
Assuming the 90 days trading horizon YH Dimri Construction is expected to generate 0.18 times more return on investment than Cannabotech. However, YH Dimri Construction is 5.47 times less risky than Cannabotech. It trades about 0.05 of its potential returns per unit of risk. Cannabotech is currently generating about -0.14 per unit of risk. If you would invest 3,678,000 in YH Dimri Construction on October 23, 2024 and sell it today you would earn a total of 43,000 from holding YH Dimri Construction or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YH Dimri Construction vs. Cannabotech
Performance |
| Timeline |
| YH Dimri Construction |
| Cannabotech |
YH Dimri and Cannabotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YH Dimri and Cannabotech
The main advantage of trading using opposite YH Dimri and Cannabotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YH Dimri position performs unexpectedly, Cannabotech 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 Cannabotech will offset losses from the drop in Cannabotech's long position.| YH Dimri vs. Azrieli Group | YH Dimri vs. Israel Canada | YH Dimri vs. Ashtrom Group | YH Dimri vs. Shikun Binui |
| Cannabotech vs. Electreon Wireless | Cannabotech vs. Bezeq Israeli Telecommunication | Cannabotech vs. Gilat Telecom Global | Cannabotech vs. Amot Investments |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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