Correlation Between Holmes Place and Imed Infinity
Can any of the company-specific risk be diversified away by investing in both Holmes Place and Imed Infinity 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 Imed Infinity 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 Imed Infinity Medical Limited, you can compare the effects of market volatilities on Holmes Place and Imed Infinity 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 Imed Infinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmes Place and Imed Infinity.
Diversification Opportunities for Holmes Place and Imed Infinity
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Holmes and Imed is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Holmes Place International and Imed Infinity Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imed Infinity Medical 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 Imed Infinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imed Infinity Medical has no effect on the direction of Holmes Place i.e., Holmes Place and Imed Infinity go up and down completely randomly.
Pair Corralation between Holmes Place and Imed Infinity
Assuming the 90 days trading horizon Holmes Place International is expected to generate 1.49 times more return on investment than Imed Infinity. However, Holmes Place is 1.49 times more volatile than Imed Infinity Medical Limited. It trades about 0.2 of its potential returns per unit of risk. Imed Infinity Medical Limited is currently generating about -0.26 per unit of risk. If you would invest 51,480 in Holmes Place International on August 29, 2024 and sell it today you would earn a total of 4,940 from holding Holmes Place International or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Holmes Place International vs. Imed Infinity Medical Limited
Performance |
| Timeline |
| Holmes Place Interna |
| Imed Infinity Medical |
Holmes Place and Imed Infinity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holmes Place and Imed Infinity
The main advantage of trading using opposite Holmes Place and Imed Infinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holmes Place position performs unexpectedly, Imed Infinity 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 Imed Infinity will offset losses from the drop in Imed Infinity'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 |
| Imed Infinity vs. Identi Healthcare | Imed Infinity vs. B Communications | Imed Infinity vs. Holmes Place International | Imed Infinity vs. Nova |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |