Correlation Between Elbit Medical and Ackerstein
Can any of the company-specific risk be diversified away by investing in both Elbit Medical and Ackerstein 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 Medical and Ackerstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Medical Technologies and Ackerstein Group, you can compare the effects of market volatilities on Elbit Medical and Ackerstein 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 Medical with a short position of Ackerstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Medical and Ackerstein.
Diversification Opportunities for Elbit Medical and Ackerstein
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Elbit and Ackerstein is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Medical Technologies and Ackerstein Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackerstein Group and Elbit Medical 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 Medical Technologies are associated (or correlated) with Ackerstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackerstein Group has no effect on the direction of Elbit Medical i.e., Elbit Medical and Ackerstein go up and down completely randomly.
Pair Corralation between Elbit Medical and Ackerstein
Assuming the 90 days trading horizon Elbit Medical Technologies is expected to under-perform the Ackerstein. In addition to that, Elbit Medical is 2.4 times more volatile than Ackerstein Group. It trades about -0.02 of its total potential returns per unit of risk. Ackerstein Group is currently generating about 0.14 per unit of volatility. If you would invest 44,650 in Ackerstein Group on September 14, 2024 and sell it today you would earn a total of 38,930 from holding Ackerstein Group or generate 87.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Elbit Medical Technologies vs. Ackerstein Group
Performance |
| Timeline |
| Elbit Medical Techno |
| Ackerstein Group |
Elbit Medical and Ackerstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Medical and Ackerstein
The main advantage of trading using opposite Elbit Medical and Ackerstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Medical position performs unexpectedly, Ackerstein 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 Ackerstein will offset losses from the drop in Ackerstein's long position.| Elbit Medical vs. Nice | Elbit Medical vs. The Gold Bond | Elbit Medical vs. Bank Leumi Le Israel | Elbit Medical vs. ICL Israel Chemicals |
| Ackerstein vs. B Communications | Ackerstein vs. Rapac Communication Infrastructure | Ackerstein vs. Retailors | Ackerstein vs. Bezeq Israeli Telecommunication |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |