Correlation Between First International and Ybox Real
Can any of the company-specific risk be diversified away by investing in both First International and Ybox Real 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 First International and Ybox Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First International Bank and Ybox Real Estate, you can compare the effects of market volatilities on First International and Ybox Real 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 First International with a short position of Ybox Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of First International and Ybox Real.
Diversification Opportunities for First International and Ybox Real
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between First and Ybox is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding First International Bank and Ybox Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ybox Real Estate and First International 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 First International Bank are associated (or correlated) with Ybox Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ybox Real Estate has no effect on the direction of First International i.e., First International and Ybox Real go up and down completely randomly.
Pair Corralation between First International and Ybox Real
Assuming the 90 days trading horizon First International is expected to generate 1.01 times less return on investment than Ybox Real. But when comparing it to its historical volatility, First International Bank is 1.6 times less risky than Ybox Real. It trades about 0.25 of its potential returns per unit of risk. Ybox Real Estate is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 7,920 in Ybox Real Estate on August 29, 2024 and sell it today you would earn a total of 1,350 from holding Ybox Real Estate or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First International Bank vs. Ybox Real Estate
Performance |
| Timeline |
| First International Bank |
| Ybox Real Estate |
First International and Ybox Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First International and Ybox Real
The main advantage of trading using opposite First International and Ybox Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First International position performs unexpectedly, Ybox Real 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 Ybox Real will offset losses from the drop in Ybox Real's long position.| First International vs. Elbit Systems | First International vs. Discount Investment Corp | First International vs. Clal Insurance Enterprises | First International vs. AudioCodes |
| Ybox Real vs. Aura Investments | Ybox Real vs. Accel Solutions Group | Ybox Real vs. Tiv Taam | Ybox Real vs. Rani Zim Shopping |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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