Correlation Between Elbit Medical and YD More
Can any of the company-specific risk be diversified away by investing in both Elbit Medical and YD More 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 YD More 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 YD More Investments, you can compare the effects of market volatilities on Elbit Medical and YD More 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 YD More. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Medical and YD More.
Diversification Opportunities for Elbit Medical and YD More
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Elbit and MRIN is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Medical Technologies and YD More Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YD More Investments 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 YD More. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YD More Investments has no effect on the direction of Elbit Medical i.e., Elbit Medical and YD More go up and down completely randomly.
Pair Corralation between Elbit Medical and YD More
Assuming the 90 days trading horizon Elbit Medical Technologies is expected to under-perform the YD More. In addition to that, Elbit Medical is 1.13 times more volatile than YD More Investments. It trades about -0.58 of its total potential returns per unit of risk. YD More Investments is currently generating about 0.33 per unit of volatility. If you would invest 120,403 in YD More Investments on September 18, 2024 and sell it today you would earn a total of 23,897 from holding YD More Investments or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Elbit Medical Technologies vs. YD More Investments
Performance |
| Timeline |
| Elbit Medical Techno |
| YD More Investments |
Elbit Medical and YD More Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Medical and YD More
The main advantage of trading using opposite Elbit Medical and YD More positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Medical position performs unexpectedly, YD More 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 YD More will offset losses from the drop in YD More'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 |
| YD More vs. Bank Hapoalim | YD More vs. Israel Discount Bank | YD More vs. Mizrahi Tefahot | YD More 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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