Correlation Between Hod Assaf and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Hod Assaf and Analyst IMS 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 Hod Assaf and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hod Assaf Industries and Analyst IMS Investment, you can compare the effects of market volatilities on Hod Assaf and Analyst IMS 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 Hod Assaf with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hod Assaf and Analyst IMS.
Diversification Opportunities for Hod Assaf and Analyst IMS
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hod and Analyst is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hod Assaf Industries and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Hod Assaf 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 Hod Assaf Industries are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Hod Assaf i.e., Hod Assaf and Analyst IMS go up and down completely randomly.
Pair Corralation between Hod Assaf and Analyst IMS
Assuming the 90 days trading horizon Hod Assaf Industries is expected to generate 1.65 times more return on investment than Analyst IMS. However, Hod Assaf is 1.65 times more volatile than Analyst IMS Investment. It trades about 0.07 of its potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.1 per unit of risk. If you would invest 412,300 in Hod Assaf Industries on September 3, 2024 and sell it today you would earn a total of 68,400 from holding Hod Assaf Industries or generate 16.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hod Assaf Industries vs. Analyst IMS Investment
Performance |
| Timeline |
| Hod Assaf Industries |
| Analyst IMS Investment |
Hod Assaf and Analyst IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hod Assaf and Analyst IMS
The main advantage of trading using opposite Hod Assaf and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hod Assaf position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.| Hod Assaf vs. Amir Marketing and | Hod Assaf vs. Delek Automotive Systems | Hod Assaf vs. Brimag L | Hod Assaf vs. Oil Refineries |
| Analyst IMS vs. Bank Hapoalim | Analyst IMS vs. Israel Discount Bank | Analyst IMS vs. First International Bank | Analyst IMS vs. Elbit Systems |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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