Correlation Between Elbit Systems and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Elbit Systems and Analyst IMS 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 Systems and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Systems and Analyst IMS Investment, you can compare the effects of market volatilities on Elbit Systems and Analyst IMS 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 Systems with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Systems and Analyst IMS.
Diversification Opportunities for Elbit Systems and Analyst IMS
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elbit and Analyst is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Systems and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Elbit Systems 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 Systems are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Elbit Systems i.e., Elbit Systems and Analyst IMS go up and down completely randomly.
Pair Corralation between Elbit Systems and Analyst IMS
Assuming the 90 days trading horizon Elbit Systems is expected to under-perform the Analyst IMS. But the stock apears to be less risky and, when comparing its historical volatility, Elbit Systems is 1.46 times less risky than Analyst IMS. The stock trades about -0.1 of its potential returns per unit of risk. The Analyst IMS Investment is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 700,000 in Analyst IMS Investment on November 22, 2024 and sell it today you would earn a total of 133,400 from holding Analyst IMS Investment or generate 19.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elbit Systems vs. Analyst IMS Investment
Performance |
| Timeline |
| Elbit Systems |
| Analyst IMS Investment |
Elbit Systems and Analyst IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Systems and Analyst IMS
The main advantage of trading using opposite Elbit Systems and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Systems position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.| Elbit Systems vs. Nice | Elbit Systems vs. Bank Leumi Le Israel | Elbit Systems vs. Teva Pharmaceutical Industries | Elbit Systems vs. Bank Hapoalim |
| Analyst IMS vs. B Communications | Analyst IMS vs. Tower Semiconductor | Analyst IMS vs. Clal Insurance Enterprises | Analyst IMS vs. YH Dimri Construction |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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