Correlation Between ORMAT TECHNOLOGIES and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both ORMAT TECHNOLOGIES and Marie Brizard 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 Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ORMAT TECHNOLOGIES and Marie Brizard Wine, you can compare the effects of market volatilities on ORMAT TECHNOLOGIES and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORMAT TECHNOLOGIES and Marie Brizard.
Diversification Opportunities for ORMAT TECHNOLOGIES and Marie Brizard
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ORMAT and Marie is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ORMAT TECHNOLOGIES and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of ORMAT TECHNOLOGIES i.e., ORMAT TECHNOLOGIES and Marie Brizard go up and down completely randomly.
Pair Corralation between ORMAT TECHNOLOGIES and Marie Brizard
Assuming the 90 days trading horizon ORMAT TECHNOLOGIES is expected to generate 0.84 times more return on investment than Marie Brizard. However, ORMAT TECHNOLOGIES is 1.19 times less risky than Marie Brizard. It trades about 0.18 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about -0.02 per unit of risk. If you would invest 6,639 in ORMAT TECHNOLOGIES on September 3, 2024 and sell it today you would earn a total of 1,081 from holding ORMAT TECHNOLOGIES or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ORMAT TECHNOLOGIES vs. Marie Brizard Wine
Performance |
| Timeline |
| ORMAT TECHNOLOGIES |
| Marie Brizard Wine |
ORMAT TECHNOLOGIES and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORMAT TECHNOLOGIES and Marie Brizard
The main advantage of trading using opposite ORMAT TECHNOLOGIES and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORMAT TECHNOLOGIES position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| ORMAT TECHNOLOGIES vs. TOTAL GABON | ORMAT TECHNOLOGIES vs. Walgreens Boots Alliance | ORMAT TECHNOLOGIES vs. Peak Resources Limited |
| Marie Brizard vs. CEOTRONICS | Marie Brizard vs. SHIP HEALTHCARE HLDGINC | Marie Brizard vs. EHEALTH | Marie Brizard vs. Treasury Wine Estates |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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