Correlation Between Elbit Systems and IBI Inv
Can any of the company-specific risk be diversified away by investing in both Elbit Systems and IBI Inv 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 IBI Inv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Systems and IBI Inv House, you can compare the effects of market volatilities on Elbit Systems and IBI Inv 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 IBI Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Systems and IBI Inv.
Diversification Opportunities for Elbit Systems and IBI Inv
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elbit and IBI is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Systems and IBI Inv House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBI Inv House 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 IBI Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBI Inv House has no effect on the direction of Elbit Systems i.e., Elbit Systems and IBI Inv go up and down completely randomly.
Pair Corralation between Elbit Systems and IBI Inv
Assuming the 90 days trading horizon Elbit Systems is expected to generate 3.55 times less return on investment than IBI Inv. In addition to that, Elbit Systems is 1.15 times more volatile than IBI Inv House. It trades about 0.09 of its total potential returns per unit of risk. IBI Inv House is currently generating about 0.38 per unit of volatility. If you would invest 1,410,000 in IBI Inv House on September 1, 2024 and sell it today you would earn a total of 179,000 from holding IBI Inv House or generate 12.7% 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. IBI Inv House
Performance |
| Timeline |
| Elbit Systems |
| IBI Inv House |
Elbit Systems and IBI Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Systems and IBI Inv
The main advantage of trading using opposite Elbit Systems and IBI Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Systems position performs unexpectedly, IBI Inv 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 IBI Inv will offset losses from the drop in IBI Inv's long position.| Elbit Systems vs. Arad | Elbit Systems vs. Alony Hetz Properties | Elbit Systems vs. Airport City | Elbit Systems vs. Harel Insurance Investments |
| IBI Inv vs. Harel Insurance Investments | IBI Inv vs. Teuza A Fairchild | IBI Inv vs. IDI Insurance | IBI Inv vs. Rapac Communication Infrastructure |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |