Correlation Between Elbit Imaging and Intercure
Can any of the company-specific risk be diversified away by investing in both Elbit Imaging and Intercure 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 Intercure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Imaging and Intercure, you can compare the effects of market volatilities on Elbit Imaging and Intercure 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 Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Imaging and Intercure.
Diversification Opportunities for Elbit Imaging and Intercure
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elbit and Intercure is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Imaging and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure 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 Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Elbit Imaging i.e., Elbit Imaging and Intercure go up and down completely randomly.
Pair Corralation between Elbit Imaging and Intercure
Assuming the 90 days trading horizon Elbit Imaging is expected to generate 3.33 times more return on investment than Intercure. However, Elbit Imaging is 3.33 times more volatile than Intercure. It trades about 0.2 of its potential returns per unit of risk. Intercure is currently generating about 0.01 per unit of risk. If you would invest 60,000 in Elbit Imaging on November 3, 2024 and sell it today you would earn a total of 14,000 from holding Elbit Imaging or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elbit Imaging vs. Intercure
Performance |
| Timeline |
| Elbit Imaging |
| Intercure |
Elbit Imaging and Intercure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Imaging and Intercure
The main advantage of trading using opposite Elbit Imaging and Intercure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Imaging position performs unexpectedly, Intercure 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 Intercure will offset losses from the drop in Intercure's long position.| Elbit Imaging vs. Abra Information Technologies | Elbit Imaging vs. Clal Insurance Enterprises | Elbit Imaging vs. Electreon Wireless | Elbit Imaging vs. Analyst IMS Investment |
| Intercure vs. Together Startup Network | Intercure vs. Delek Group | Intercure vs. Teva Pharmaceutical Industries | Intercure vs. El Al Israel |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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