Correlation Between Generation Capital and IBI Inv
Can any of the company-specific risk be diversified away by investing in both Generation Capital and IBI Inv 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 IBI Inv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Capital and IBI Inv House, you can compare the effects of market volatilities on Generation Capital and IBI Inv 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 IBI Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Capital and IBI Inv.
Diversification Opportunities for Generation Capital and IBI Inv
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Generation and IBI is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Generation Capital and IBI Inv House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBI Inv House 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 IBI Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBI Inv House has no effect on the direction of Generation Capital i.e., Generation Capital and IBI Inv go up and down completely randomly.
Pair Corralation between Generation Capital and IBI Inv
Assuming the 90 days trading horizon Generation Capital is expected to generate 3.0 times less return on investment than IBI Inv. In addition to that, Generation Capital is 1.35 times more volatile than IBI Inv House. It trades about 0.04 of its total potential returns per unit of risk. IBI Inv House is currently generating about 0.16 per unit of volatility. If you would invest 1,073,669 in IBI Inv House on August 25, 2024 and sell it today you would earn a total of 462,331 from holding IBI Inv House or generate 43.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generation Capital vs. IBI Inv House
Performance |
| Timeline |
| Generation Capital |
| IBI Inv House |
Generation Capital and IBI Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Capital and IBI Inv
The main advantage of trading using opposite Generation Capital and IBI Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Capital position performs unexpectedly, IBI Inv 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 IBI Inv will offset losses from the drop in IBI Inv'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 |
| IBI Inv vs. Bank Hapoalim | IBI Inv vs. Israel Discount Bank | IBI Inv vs. Mizrahi Tefahot | IBI Inv vs. Bezeq Israeli Telecommunication |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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