Correlation Between Human Xtensions and Elbit Imaging
Can any of the company-specific risk be diversified away by investing in both Human Xtensions and Elbit Imaging 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 Human Xtensions and Elbit Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Human Xtensions and Elbit Imaging, you can compare the effects of market volatilities on Human Xtensions and Elbit Imaging 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 Human Xtensions with a short position of Elbit Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Human Xtensions and Elbit Imaging.
Diversification Opportunities for Human Xtensions and Elbit Imaging
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Human and Elbit is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Human Xtensions and Elbit Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Imaging and Human Xtensions 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 Human Xtensions are associated (or correlated) with Elbit Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Imaging has no effect on the direction of Human Xtensions i.e., Human Xtensions and Elbit Imaging go up and down completely randomly.
Pair Corralation between Human Xtensions and Elbit Imaging
Assuming the 90 days trading horizon Human Xtensions is expected to generate 1.2 times less return on investment than Elbit Imaging. In addition to that, Human Xtensions is 1.44 times more volatile than Elbit Imaging. It trades about 0.12 of its total potential returns per unit of risk. Elbit Imaging is currently generating about 0.2 per unit of volatility. If you would invest 60,000 in Elbit Imaging on November 3, 2024 and sell it today you would earn a total of 14,000 from holding Elbit Imaging or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Human Xtensions vs. Elbit Imaging
Performance |
| Timeline |
| Human Xtensions |
| Elbit Imaging |
Human Xtensions and Elbit Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Human Xtensions and Elbit Imaging
The main advantage of trading using opposite Human Xtensions and Elbit Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Human Xtensions position performs unexpectedly, Elbit Imaging 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 Elbit Imaging will offset losses from the drop in Elbit Imaging's long position.| Human Xtensions vs. Dan Hotels | Human Xtensions vs. WhiteSmoke Software | Human Xtensions vs. Spuntech | Human Xtensions vs. Batm Advanced Communications |
| Elbit Imaging vs. Abra Information Technologies | Elbit Imaging vs. Clal Insurance Enterprises | Elbit Imaging vs. Electreon Wireless | Elbit Imaging vs. Analyst IMS Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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