Correlation Between Electreon Wireless and Poalim Ibi
Can any of the company-specific risk be diversified away by investing in both Electreon Wireless and Poalim Ibi 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 Electreon Wireless and Poalim Ibi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electreon Wireless and Poalim Ibi, you can compare the effects of market volatilities on Electreon Wireless and Poalim Ibi 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 Electreon Wireless with a short position of Poalim Ibi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electreon Wireless and Poalim Ibi.
Diversification Opportunities for Electreon Wireless and Poalim Ibi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Electreon and Poalim is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Electreon Wireless and Poalim Ibi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poalim Ibi and Electreon Wireless 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 Electreon Wireless are associated (or correlated) with Poalim Ibi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poalim Ibi has no effect on the direction of Electreon Wireless i.e., Electreon Wireless and Poalim Ibi go up and down completely randomly.
Pair Corralation between Electreon Wireless and Poalim Ibi
Assuming the 90 days trading horizon Electreon Wireless is expected to generate 5.03 times less return on investment than Poalim Ibi. In addition to that, Electreon Wireless is 2.59 times more volatile than Poalim Ibi. It trades about 0.01 of its total potential returns per unit of risk. Poalim Ibi is currently generating about 0.13 per unit of volatility. If you would invest 64,000 in Poalim Ibi on August 30, 2024 and sell it today you would earn a total of 4,500 from holding Poalim Ibi or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electreon Wireless vs. Poalim Ibi
Performance |
| Timeline |
| Electreon Wireless |
| Poalim Ibi |
Electreon Wireless and Poalim Ibi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electreon Wireless and Poalim Ibi
The main advantage of trading using opposite Electreon Wireless and Poalim Ibi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electreon Wireless position performs unexpectedly, Poalim Ibi 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 Poalim Ibi will offset losses from the drop in Poalim Ibi's long position.| Electreon Wireless vs. Augwind Energy Tech | Electreon Wireless vs. Fattal 1998 Holdings | Electreon Wireless vs. B Communications | Electreon Wireless vs. Nova |
| Poalim Ibi vs. Elbit Systems | Poalim Ibi vs. Discount Investment Corp | Poalim Ibi vs. AudioCodes | Poalim Ibi vs. Shufersal |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |