Correlation Between Feat Fund and Tel Aviv
Can any of the company-specific risk be diversified away by investing in both Feat Fund and Tel Aviv 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 Feat Fund and Tel Aviv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feat Fund Investments and Tel Aviv 35, you can compare the effects of market volatilities on Feat Fund and Tel Aviv 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 Feat Fund with a short position of Tel Aviv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feat Fund and Tel Aviv.
Diversification Opportunities for Feat Fund and Tel Aviv
Very weak diversification
The 3 months correlation between Feat and Tel is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Feat Fund Investments and Tel Aviv 35 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tel Aviv 35 and Feat Fund 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 Feat Fund Investments are associated (or correlated) with Tel Aviv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tel Aviv 35 has no effect on the direction of Feat Fund i.e., Feat Fund and Tel Aviv go up and down completely randomly.
Pair Corralation between Feat Fund and Tel Aviv
Assuming the 90 days trading horizon Feat Fund Investments is expected to under-perform the Tel Aviv. In addition to that, Feat Fund is 4.48 times more volatile than Tel Aviv 35. It trades about 0.0 of its total potential returns per unit of risk. Tel Aviv 35 is currently generating about 0.06 per unit of volatility. If you would invest 184,723 in Tel Aviv 35 on August 29, 2024 and sell it today you would earn a total of 45,616 from holding Tel Aviv 35 or generate 24.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feat Fund Investments vs. Tel Aviv 35
Performance |
| Timeline |
Feat Fund and Tel Aviv Volatility Contrast
Predicted Return Density |
| Returns |
Feat Fund Investments
Pair trading matchups for Feat Fund
Tel Aviv 35
Pair trading matchups for Tel Aviv
Pair Trading with Feat Fund and Tel Aviv
The main advantage of trading using opposite Feat Fund and Tel Aviv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feat Fund position performs unexpectedly, Tel Aviv 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 Tel Aviv will offset losses from the drop in Tel Aviv's long position.| Feat Fund vs. Nice | Feat Fund vs. The Gold Bond | Feat Fund vs. Bank Leumi Le Israel | Feat Fund vs. ICL Israel Chemicals |
| Tel Aviv vs. Azorim Investment Development | Tel Aviv vs. Shagrir Group Vehicle | Tel Aviv vs. Sure Tech Investments LP | Tel Aviv vs. Retailors |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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