Correlation Between Hod Assaf and Evogene
Can any of the company-specific risk be diversified away by investing in both Hod Assaf and Evogene 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 Evogene 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 Evogene, you can compare the effects of market volatilities on Hod Assaf and Evogene 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 Evogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hod Assaf and Evogene.
Diversification Opportunities for Hod Assaf and Evogene
Weak diversification
The 3 months correlation between Hod and Evogene is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hod Assaf Industries and Evogene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evogene 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 Evogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evogene has no effect on the direction of Hod Assaf i.e., Hod Assaf and Evogene go up and down completely randomly.
Pair Corralation between Hod Assaf and Evogene
Assuming the 90 days trading horizon Hod Assaf Industries is expected to generate 0.52 times more return on investment than Evogene. However, Hod Assaf Industries is 1.94 times less risky than Evogene. It trades about 0.08 of its potential returns per unit of risk. Evogene is currently generating about -0.15 per unit of risk. If you would invest 305,400 in Hod Assaf Industries on August 29, 2024 and sell it today you would earn a total of 106,300 from holding Hod Assaf Industries or generate 34.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hod Assaf Industries vs. Evogene
Performance |
| Timeline |
| Hod Assaf Industries |
| Evogene |
Hod Assaf and Evogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hod Assaf and Evogene
The main advantage of trading using opposite Hod Assaf and Evogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hod Assaf position performs unexpectedly, Evogene 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 Evogene will offset losses from the drop in Evogene'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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