Correlation Between Fattal 1998 and Aura Investments
Can any of the company-specific risk be diversified away by investing in both Fattal 1998 and Aura Investments 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 Fattal 1998 and Aura Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fattal 1998 Holdings and Aura Investments, you can compare the effects of market volatilities on Fattal 1998 and Aura Investments 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 Fattal 1998 with a short position of Aura Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fattal 1998 and Aura Investments.
Diversification Opportunities for Fattal 1998 and Aura Investments
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fattal and Aura is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fattal 1998 Holdings and Aura Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura Investments and Fattal 1998 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 Fattal 1998 Holdings are associated (or correlated) with Aura Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Investments has no effect on the direction of Fattal 1998 i.e., Fattal 1998 and Aura Investments go up and down completely randomly.
Pair Corralation between Fattal 1998 and Aura Investments
Assuming the 90 days trading horizon Fattal 1998 Holdings is expected to generate 0.96 times more return on investment than Aura Investments. However, Fattal 1998 Holdings is 1.05 times less risky than Aura Investments. It trades about 0.22 of its potential returns per unit of risk. Aura Investments is currently generating about 0.12 per unit of risk. If you would invest 4,227,000 in Fattal 1998 Holdings on September 2, 2024 and sell it today you would earn a total of 1,045,000 from holding Fattal 1998 Holdings or generate 24.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fattal 1998 Holdings vs. Aura Investments
Performance |
| Timeline |
| Fattal 1998 Holdings |
| Aura Investments |
Fattal 1998 and Aura Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fattal 1998 and Aura Investments
The main advantage of trading using opposite Fattal 1998 and Aura Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fattal 1998 position performs unexpectedly, Aura Investments 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 Aura Investments will offset losses from the drop in Aura Investments' long position.| Fattal 1998 vs. Delek Group | Fattal 1998 vs. El Al Israel | Fattal 1998 vs. Bank Leumi Le Israel | Fattal 1998 vs. Azrieli Group |
| Aura Investments vs. Fattal 1998 Holdings | Aura Investments vs. Azrieli Group | Aura Investments vs. Clal Insurance Enterprises |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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