Correlation Between Elbit Imaging and Real Estate
Can any of the company-specific risk be diversified away by investing in both Elbit Imaging and Real Estate 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 Real Estate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Imaging and Real Estate Securities, you can compare the effects of market volatilities on Elbit Imaging and Real Estate 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 Real Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Imaging and Real Estate.
Diversification Opportunities for Elbit Imaging and Real Estate
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elbit and Real is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Imaging and Real Estate Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Securities 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 Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Securities has no effect on the direction of Elbit Imaging i.e., Elbit Imaging and Real Estate go up and down completely randomly.
Pair Corralation between Elbit Imaging and Real Estate
If you would invest 2,565 in Real Estate Securities on August 28, 2024 and sell it today you would earn a total of 443.00 from holding Real Estate Securities or generate 17.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.48% |
| Values | Daily Returns |
Elbit Imaging vs. Real Estate Securities
Performance |
| Timeline |
| Elbit Imaging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Real Estate Securities |
Elbit Imaging and Real Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Imaging and Real Estate
The main advantage of trading using opposite Elbit Imaging and Real Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Imaging position performs unexpectedly, Real Estate 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 Real Estate will offset losses from the drop in Real Estate's long position.| Elbit Imaging vs. Edwards Lifesciences Corp | Elbit Imaging vs. Medtronic PLC | Elbit Imaging vs. Abbott Laboratories | Elbit Imaging vs. Boston Scientific Corp |
| Real Estate vs. Quantitative Longshort Equity | Real Estate vs. Maryland Short Term Tax Free | Real Estate vs. Old Westbury Short Term | Real Estate vs. Ultra Short Term Fixed |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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