Correlation Between Holmes Place and Bio Meat
Can any of the company-specific risk be diversified away by investing in both Holmes Place and Bio Meat 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 Holmes Place and Bio Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holmes Place International and Bio Meat Foodtech, you can compare the effects of market volatilities on Holmes Place and Bio Meat 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 Holmes Place with a short position of Bio Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmes Place and Bio Meat.
Diversification Opportunities for Holmes Place and Bio Meat
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Holmes and Bio is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Holmes Place International and Bio Meat Foodtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Meat Foodtech and Holmes Place 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 Holmes Place International are associated (or correlated) with Bio Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Meat Foodtech has no effect on the direction of Holmes Place i.e., Holmes Place and Bio Meat go up and down completely randomly.
Pair Corralation between Holmes Place and Bio Meat
Assuming the 90 days trading horizon Holmes Place International is expected to generate 0.62 times more return on investment than Bio Meat. However, Holmes Place International is 1.6 times less risky than Bio Meat. It trades about 0.07 of its potential returns per unit of risk. Bio Meat Foodtech is currently generating about -0.13 per unit of risk. If you would invest 43,354 in Holmes Place International on September 1, 2024 and sell it today you would earn a total of 12,616 from holding Holmes Place International or generate 29.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holmes Place International vs. Bio Meat Foodtech
Performance |
| Timeline |
| Holmes Place Interna |
| Bio Meat Foodtech |
Holmes Place and Bio Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holmes Place and Bio Meat
The main advantage of trading using opposite Holmes Place and Bio Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holmes Place position performs unexpectedly, Bio Meat 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 Bio Meat will offset losses from the drop in Bio Meat's long position.| Holmes Place vs. Fattal 1998 Holdings | Holmes Place vs. Delek Group | Holmes Place vs. Bank Leumi Le Israel | Holmes Place vs. Matrix |
| Bio Meat vs. Global Knafaim Leasing | Bio Meat vs. Rimon Consulting Management | Bio Meat vs. B Communications | Bio Meat vs. IDI Insurance |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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