Correlation Between Discount Investment and Brack Capit
Can any of the company-specific risk be diversified away by investing in both Discount Investment and Brack Capit 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 Discount Investment and Brack Capit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Discount Investment Corp and Brack Capit N, you can compare the effects of market volatilities on Discount Investment and Brack Capit 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 Discount Investment with a short position of Brack Capit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Discount Investment and Brack Capit.
Diversification Opportunities for Discount Investment and Brack Capit
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Discount and Brack is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Discount Investment Corp and Brack Capit N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brack Capit N and Discount Investment 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 Discount Investment Corp are associated (or correlated) with Brack Capit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brack Capit N has no effect on the direction of Discount Investment i.e., Discount Investment and Brack Capit go up and down completely randomly.
Pair Corralation between Discount Investment and Brack Capit
Assuming the 90 days trading horizon Discount Investment Corp is expected to generate 1.04 times more return on investment than Brack Capit. However, Discount Investment is 1.04 times more volatile than Brack Capit N. It trades about 0.22 of its potential returns per unit of risk. Brack Capit N is currently generating about 0.02 per unit of risk. If you would invest 41,130 in Discount Investment Corp on November 28, 2024 and sell it today you would earn a total of 9,070 from holding Discount Investment Corp or generate 22.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Discount Investment Corp vs. Brack Capit N
Performance |
| Timeline |
| Discount Investment Corp |
| Brack Capit N |
Discount Investment and Brack Capit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Discount Investment and Brack Capit
The main advantage of trading using opposite Discount Investment and Brack Capit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Discount Investment position performs unexpectedly, Brack Capit 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 Brack Capit will offset losses from the drop in Brack Capit's long position.| Discount Investment vs. Clal Insurance Enterprises | Discount Investment vs. Israel Discount Bank | Discount Investment vs. Migdal Insurance | Discount Investment vs. Bezeq Israeli Telecommunication |
| Brack Capit vs. Sure Tech Investments LP | Brack Capit vs. Sarine Technologies | Brack Capit vs. Retailors | Brack Capit vs. Magic Software Enterprises |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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