Correlation Between Hod Assaf and Bull Trading
Can any of the company-specific risk be diversified away by investing in both Hod Assaf and Bull Trading 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 Bull Trading 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 Bull Trading And, you can compare the effects of market volatilities on Hod Assaf and Bull Trading 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 Bull Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hod Assaf and Bull Trading.
Diversification Opportunities for Hod Assaf and Bull Trading
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hod and Bull is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hod Assaf Industries and Bull Trading And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bull Trading And 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 Bull Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bull Trading And has no effect on the direction of Hod Assaf i.e., Hod Assaf and Bull Trading go up and down completely randomly.
Pair Corralation between Hod Assaf and Bull Trading
Assuming the 90 days trading horizon Hod Assaf Industries is expected to generate 1.12 times more return on investment than Bull Trading. However, Hod Assaf is 1.12 times more volatile than Bull Trading And. It trades about 0.32 of its potential returns per unit of risk. Bull Trading And is currently generating about 0.02 per unit of risk. If you would invest 389,900 in Hod Assaf Industries on September 1, 2024 and sell it today you would earn a total of 90,800 from holding Hod Assaf Industries or generate 23.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Hod Assaf Industries vs. Bull Trading And
Performance |
| Timeline |
| Hod Assaf Industries |
| Bull Trading And |
Hod Assaf and Bull Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hod Assaf and Bull Trading
The main advantage of trading using opposite Hod Assaf and Bull Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hod Assaf position performs unexpectedly, Bull Trading 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 Bull Trading will offset losses from the drop in Bull Trading'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 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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