Correlation Between Generation Capital and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Generation Capital and Analyst IMS 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 Generation Capital and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Capital and Analyst IMS Investment, you can compare the effects of market volatilities on Generation Capital and Analyst IMS 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 Generation Capital with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Capital and Analyst IMS.
Diversification Opportunities for Generation Capital and Analyst IMS
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Generation and Analyst is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Generation Capital and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Generation Capital 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 Generation Capital are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Generation Capital i.e., Generation Capital and Analyst IMS go up and down completely randomly.
Pair Corralation between Generation Capital and Analyst IMS
Assuming the 90 days trading horizon Generation Capital is expected to generate 1.8 times less return on investment than Analyst IMS. In addition to that, Generation Capital is 1.57 times more volatile than Analyst IMS Investment. It trades about 0.04 of its total potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.11 per unit of volatility. If you would invest 352,739 in Analyst IMS Investment on August 25, 2024 and sell it today you would earn a total of 83,161 from holding Analyst IMS Investment or generate 23.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generation Capital vs. Analyst IMS Investment
Performance |
| Timeline |
| Generation Capital |
| Analyst IMS Investment |
Generation Capital and Analyst IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Capital and Analyst IMS
The main advantage of trading using opposite Generation Capital and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Capital position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.| Generation Capital vs. EN Shoham Business | Generation Capital vs. Mivtach Shamir | Generation Capital vs. Enlight Renewable Energy | Generation Capital vs. Rani Zim Shopping |
| Analyst IMS vs. Israel China Biotechnology | Analyst IMS vs. Aura Investments | Analyst IMS vs. Suny Cellular Communication | Analyst IMS vs. Arad Investment Industrial |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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