Correlation Between Elbit Systems and Intercure
Can any of the company-specific risk be diversified away by investing in both Elbit Systems 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 Elbit Systems and Intercure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elbit Systems and Intercure, you can compare the effects of market volatilities on Elbit Systems 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 Elbit Systems with a short position of Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Systems and Intercure.
Diversification Opportunities for Elbit Systems and Intercure
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elbit and Intercure is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Systems and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure 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 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 Elbit Systems i.e., Elbit Systems and Intercure go up and down completely randomly.
Pair Corralation between Elbit Systems and Intercure
Assuming the 90 days trading horizon Elbit Systems is expected to generate 0.39 times more return on investment than Intercure. However, Elbit Systems is 2.6 times less risky than Intercure. It trades about 0.05 of its potential returns per unit of risk. Intercure is currently generating about 0.01 per unit of risk. If you would invest 7,524,047 in Elbit Systems on September 12, 2024 and sell it today you would earn a total of 1,289,953 from holding Elbit Systems or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elbit Systems vs. Intercure
Performance |
| Timeline |
| Elbit Systems |
| Intercure |
Elbit Systems and Intercure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elbit Systems and Intercure
The main advantage of trading using opposite Elbit Systems and Intercure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Systems 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.| Elbit Systems vs. Aran Research and | Elbit Systems vs. Al Bad Massuot Yitzhak | Elbit Systems vs. Analyst IMS Investment | Elbit Systems vs. Golan Plastic |
| Intercure vs. Kamada | Intercure vs. Bezeq Israeli Telecommunication | Intercure vs. B Communications | Intercure vs. Photomyne |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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