Correlation Between Equital and Intercure
Can any of the company-specific risk be diversified away by investing in both Equital 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 Equital and Intercure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equital and Intercure, you can compare the effects of market volatilities on Equital 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 Equital with a short position of Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equital and Intercure.
Diversification Opportunities for Equital and Intercure
Pay attention - limited upside
The 3 months correlation between Equital and Intercure is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Equital and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure and Equital 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 Equital 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 Equital i.e., Equital and Intercure go up and down completely randomly.
Pair Corralation between Equital and Intercure
Assuming the 90 days trading horizon Equital is expected to generate 1.03 times more return on investment than Intercure. However, Equital is 1.03 times more volatile than Intercure. It trades about 0.08 of its potential returns per unit of risk. Intercure is currently generating about 0.01 per unit of risk. If you would invest 1,401,000 in Equital on November 3, 2024 and sell it today you would earn a total of 38,000 from holding Equital or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equital vs. Intercure
Performance |
| Timeline |
| Equital |
| Intercure |
Equital and Intercure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equital and Intercure
The main advantage of trading using opposite Equital and Intercure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equital 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.| Equital vs. Migdal Insurance | Equital vs. Harel Insurance Investments | Equital vs. Delek Automotive Systems | Equital vs. Airport City |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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