Correlation Between Elbit Medical and C Mer
Can any of the company-specific risk be diversified away by investing in both Elbit Medical and C Mer 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 C Mer 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 C Mer Industries, you can compare the effects of market volatilities on Elbit Medical and C Mer 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 C Mer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Medical and C Mer.
Diversification Opportunities for Elbit Medical and C Mer
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elbit and CMER is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Medical Technologies and C Mer Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Mer Industries 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 C Mer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Mer Industries has no effect on the direction of Elbit Medical i.e., Elbit Medical and C Mer go up and down completely randomly.
Pair Corralation between Elbit Medical and C Mer
Assuming the 90 days trading horizon Elbit Medical Technologies is expected to generate 2.08 times more return on investment than C Mer. However, Elbit Medical is 2.08 times more volatile than C Mer Industries. It trades about 0.29 of its potential returns per unit of risk. C Mer Industries is currently generating about 0.55 per unit of risk. If you would invest 1,450 in Elbit Medical Technologies on November 3, 2024 and sell it today you would earn a total of 290.00 from holding Elbit Medical Technologies or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elbit Medical Technologies vs. C Mer Industries
Performance |
| Timeline |
| Elbit Medical Techno |
| C Mer Industries |
Elbit Medical and C Mer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Medical and C Mer
The main advantage of trading using opposite Elbit Medical and C Mer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Medical position performs unexpectedly, C Mer 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 C Mer will offset losses from the drop in C Mer's long position.| Elbit Medical vs. Meitav Dash Investments | Elbit Medical vs. Insuline Medical | Elbit Medical vs. Ilex Medical | Elbit Medical vs. Azorim Investment Development |
| C Mer vs. Sure Tech Investments LP | C Mer vs. Retailors | C Mer vs. TAT Technologies | C Mer vs. Wesure Global Tech |
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 Stocks Directory module to find actively traded stocks across global markets.
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