Correlation Between Elbit Imaging and Bio View
Can any of the company-specific risk be diversified away by investing in both Elbit Imaging and Bio View 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 Elbit Imaging and Bio View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Imaging and Bio View, you can compare the effects of market volatilities on Elbit Imaging and Bio View 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 Elbit Imaging with a short position of Bio View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Imaging and Bio View.
Diversification Opportunities for Elbit Imaging and Bio View
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elbit and Bio is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Imaging and Bio View in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio View and Elbit Imaging 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 Elbit Imaging are associated (or correlated) with Bio View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio View has no effect on the direction of Elbit Imaging i.e., Elbit Imaging and Bio View go up and down completely randomly.
Pair Corralation between Elbit Imaging and Bio View
Assuming the 90 days trading horizon Elbit Imaging is expected to generate 2.2 times more return on investment than Bio View. However, Elbit Imaging is 2.2 times more volatile than Bio View. It trades about 0.36 of its potential returns per unit of risk. Bio View is currently generating about 0.08 per unit of risk. If you would invest 59,100 in Elbit Imaging on October 23, 2024 and sell it today you would earn a total of 24,900 from holding Elbit Imaging or generate 42.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elbit Imaging vs. Bio View
Performance |
| Timeline |
| Elbit Imaging |
| Bio View |
Elbit Imaging and Bio View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Imaging and Bio View
The main advantage of trading using opposite Elbit Imaging and Bio View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Imaging position performs unexpectedly, Bio View 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 Bio View will offset losses from the drop in Bio View's long position.| Elbit Imaging vs. Sure Tech Investments LP | Elbit Imaging vs. One Software Technologies | Elbit Imaging vs. Clal Biotechnology Industries | Elbit Imaging vs. Wesure Global Tech |
| Bio View vs. Hiron Trade Investments Industrial | Bio View vs. Ilex Medical | Bio View vs. Migdal Insurance | Bio View vs. Menif Financial Services |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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