Correlation Between Holmes Place and Intelicanna
Can any of the company-specific risk be diversified away by investing in both Holmes Place and Intelicanna 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 Intelicanna 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 Intelicanna, you can compare the effects of market volatilities on Holmes Place and Intelicanna 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 Intelicanna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmes Place and Intelicanna.
Diversification Opportunities for Holmes Place and Intelicanna
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Holmes and Intelicanna is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Holmes Place International and Intelicanna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelicanna 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 Intelicanna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelicanna has no effect on the direction of Holmes Place i.e., Holmes Place and Intelicanna go up and down completely randomly.
Pair Corralation between Holmes Place and Intelicanna
Assuming the 90 days trading horizon Holmes Place International is expected to generate 0.08 times more return on investment than Intelicanna. However, Holmes Place International is 13.3 times less risky than Intelicanna. It trades about 0.41 of its potential returns per unit of risk. Intelicanna is currently generating about 0.03 per unit of risk. If you would invest 63,000 in Holmes Place International on November 27, 2024 and sell it today you would earn a total of 2,500 from holding Holmes Place International or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holmes Place International vs. Intelicanna
Performance |
| Timeline |
| Holmes Place Interna |
| Intelicanna |
Holmes Place and Intelicanna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holmes Place and Intelicanna
The main advantage of trading using opposite Holmes Place and Intelicanna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holmes Place position performs unexpectedly, Intelicanna 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 Intelicanna will offset losses from the drop in Intelicanna'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 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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