Correlation Between Holmes Place and Spuntech
Can any of the company-specific risk be diversified away by investing in both Holmes Place and Spuntech 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 Spuntech 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 Spuntech, you can compare the effects of market volatilities on Holmes Place and Spuntech 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 Spuntech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmes Place and Spuntech.
Diversification Opportunities for Holmes Place and Spuntech
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Holmes and Spuntech is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Holmes Place International and Spuntech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spuntech 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 Spuntech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spuntech has no effect on the direction of Holmes Place i.e., Holmes Place and Spuntech go up and down completely randomly.
Pair Corralation between Holmes Place and Spuntech
Assuming the 90 days trading horizon Holmes Place is expected to generate 1.32 times less return on investment than Spuntech. In addition to that, Holmes Place is 1.13 times more volatile than Spuntech. It trades about 0.2 of its total potential returns per unit of risk. Spuntech is currently generating about 0.29 per unit of volatility. If you would invest 43,720 in Spuntech on August 29, 2024 and sell it today you would earn a total of 5,760 from holding Spuntech or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holmes Place International vs. Spuntech
Performance |
| Timeline |
| Holmes Place Interna |
| Spuntech |
Holmes Place and Spuntech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holmes Place and Spuntech
The main advantage of trading using opposite Holmes Place and Spuntech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holmes Place position performs unexpectedly, Spuntech 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 Spuntech will offset losses from the drop in Spuntech'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 |
| Spuntech vs. Strauss Group | Spuntech vs. B Communications | Spuntech vs. Holmes Place International | Spuntech 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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