Correlation Between First Industrial and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both First Industrial and Elbit Imaging 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 Industrial and Elbit Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Industrial Realty and Elbit Imaging, you can compare the effects of market volatilities on First Industrial and Elbit Imaging 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 Industrial with a short position of Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and Elbit Imaging.
Diversification Opportunities for First Industrial and Elbit Imaging
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Elbit is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging and First Industrial 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 Industrial Realty are associated (or correlated) with Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of First Industrial i.e., First Industrial and Elbit Imaging go up and down completely randomly.
Pair Corralation between First Industrial and Elbit Imaging
If you would invest 4,620 in First Industrial Realty on September 2, 2024 and sell it today you would earn a total of 725.00 from holding First Industrial Realty or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
First Industrial Realty vs. Elbit Imaging
Performance |
| Timeline |
| First Industrial Realty |
| Elbit Imaging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Industrial and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Industrial and Elbit Imaging
The main advantage of trading using opposite First Industrial and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.| First Industrial vs. LXP Industrial Trust | First Industrial vs. Plymouth Industrial REIT | First Industrial vs. Global Self Storage | First Industrial vs. Terreno Realty |
| Elbit Imaging vs. Edwards Lifesciences Corp | Elbit Imaging vs. Medtronic PLC | Elbit Imaging vs. Abbott Laboratories | Elbit Imaging vs. Boston Scientific Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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