Correlation Between Grace Breeding and Elbit Medical
Can any of the company-specific risk be diversified away by investing in both Grace Breeding and Elbit Medical 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 Grace Breeding and Elbit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grace Breeding and Elbit Medical Technologies, you can compare the effects of market volatilities on Grace Breeding and Elbit Medical 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 Grace Breeding with a short position of Elbit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grace Breeding and Elbit Medical.
Diversification Opportunities for Grace Breeding and Elbit Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grace and Elbit is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Grace Breeding and Elbit Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Medical Techno and Grace Breeding 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 Grace Breeding are associated (or correlated) with Elbit Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Medical Techno has no effect on the direction of Grace Breeding i.e., Grace Breeding and Elbit Medical go up and down completely randomly.
Pair Corralation between Grace Breeding and Elbit Medical
Assuming the 90 days trading horizon Grace Breeding is expected to generate 0.29 times more return on investment than Elbit Medical. However, Grace Breeding is 3.43 times less risky than Elbit Medical. It trades about -0.15 of its potential returns per unit of risk. Elbit Medical Technologies is currently generating about -0.14 per unit of risk. If you would invest 170,700 in Grace Breeding on August 30, 2024 and sell it today you would lose (5,700) from holding Grace Breeding or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Grace Breeding vs. Elbit Medical Technologies
Performance |
| Timeline |
| Grace Breeding |
| Elbit Medical Techno |
Grace Breeding and Elbit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grace Breeding and Elbit Medical
The main advantage of trading using opposite Grace Breeding and Elbit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grace Breeding position performs unexpectedly, Elbit Medical 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 Medical will offset losses from the drop in Elbit Medical's long position.| Grace Breeding vs. Amot Investments | Grace Breeding vs. Oron Group Investments | Grace Breeding vs. Arad Investment Industrial | Grace Breeding vs. Discount Investment Corp |
| Elbit Medical vs. Nice | Elbit Medical vs. The Gold Bond | Elbit Medical vs. Bank Leumi Le Israel | Elbit Medical vs. ICL Israel Chemicals |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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