Correlation Between Electra Real and YD More
Can any of the company-specific risk be diversified away by investing in both Electra Real and YD More 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 Electra Real and YD More into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electra Real Estate and YD More Investments, you can compare the effects of market volatilities on Electra Real and YD More 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 Electra Real with a short position of YD More. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electra Real and YD More.
Diversification Opportunities for Electra Real and YD More
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Electra and MRIN is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Electra Real Estate and YD More Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YD More Investments and Electra Real 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 Electra Real Estate are associated (or correlated) with YD More. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YD More Investments has no effect on the direction of Electra Real i.e., Electra Real and YD More go up and down completely randomly.
Pair Corralation between Electra Real and YD More
Assuming the 90 days trading horizon Electra Real Estate is expected to generate 1.53 times more return on investment than YD More. However, Electra Real is 1.53 times more volatile than YD More Investments. It trades about 0.24 of its potential returns per unit of risk. YD More Investments is currently generating about 0.14 per unit of risk. If you would invest 444,500 in Electra Real Estate on November 9, 2024 and sell it today you would earn a total of 56,500 from holding Electra Real Estate or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electra Real Estate vs. YD More Investments
Performance |
| Timeline |
| Electra Real Estate |
| YD More Investments |
Electra Real and YD More Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electra Real and YD More
The main advantage of trading using opposite Electra Real and YD More positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electra Real position performs unexpectedly, YD More 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 YD More will offset losses from the drop in YD More's long position.| Electra Real vs. Azrieli Group | Electra Real vs. Israel Discount Bank | Electra Real vs. Alony Hetz Properties | Electra Real vs. Shufersal |
| YD More vs. Bank Leumi Le Israel | YD More vs. Mizrahi Tefahot | YD More vs. Israel Discount Bank | YD More vs. Bank Hapoalim |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |