Correlation Between ORMAT TECHNOLOGIES and STGEORGE MINING
Can any of the company-specific risk be diversified away by investing in both ORMAT TECHNOLOGIES and STGEORGE MINING 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 ORMAT TECHNOLOGIES and STGEORGE MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ORMAT TECHNOLOGIES and STGEORGE MINING LTD, you can compare the effects of market volatilities on ORMAT TECHNOLOGIES and STGEORGE MINING 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 ORMAT TECHNOLOGIES with a short position of STGEORGE MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORMAT TECHNOLOGIES and STGEORGE MINING.
Diversification Opportunities for ORMAT TECHNOLOGIES and STGEORGE MINING
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ORMAT and STGEORGE is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding ORMAT TECHNOLOGIES and STGEORGE MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STGEORGE MINING LTD and ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES are associated (or correlated) with STGEORGE MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STGEORGE MINING LTD has no effect on the direction of ORMAT TECHNOLOGIES i.e., ORMAT TECHNOLOGIES and STGEORGE MINING go up and down completely randomly.
Pair Corralation between ORMAT TECHNOLOGIES and STGEORGE MINING
Assuming the 90 days trading horizon ORMAT TECHNOLOGIES is expected to under-perform the STGEORGE MINING. But the stock apears to be less risky and, when comparing its historical volatility, ORMAT TECHNOLOGIES is 4.13 times less risky than STGEORGE MINING. The stock trades about -0.19 of its potential returns per unit of risk. The STGEORGE MINING LTD is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.20 in STGEORGE MINING LTD on November 4, 2024 and sell it today you would earn a total of 0.05 from holding STGEORGE MINING LTD or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ORMAT TECHNOLOGIES vs. STGEORGE MINING LTD
Performance |
| Timeline |
| ORMAT TECHNOLOGIES |
| STGEORGE MINING LTD |
ORMAT TECHNOLOGIES and STGEORGE MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORMAT TECHNOLOGIES and STGEORGE MINING
The main advantage of trading using opposite ORMAT TECHNOLOGIES and STGEORGE MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORMAT TECHNOLOGIES position performs unexpectedly, STGEORGE MINING 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 STGEORGE MINING will offset losses from the drop in STGEORGE MINING's long position.| ORMAT TECHNOLOGIES vs. Methode Electronics | ORMAT TECHNOLOGIES vs. LPKF Laser Electronics | ORMAT TECHNOLOGIES vs. STORE ELECTRONIC | ORMAT TECHNOLOGIES vs. GOLD ROAD RES |
| STGEORGE MINING vs. Tyson Foods | STGEORGE MINING vs. MONEYSUPERMARKET | STGEORGE MINING vs. PATTIES FOODS | STGEORGE MINING vs. ATRESMEDIA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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