Correlation Between Human Xtensions and Intercure
Can any of the company-specific risk be diversified away by investing in both Human Xtensions and Intercure 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 Intercure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Human Xtensions and Intercure, you can compare the effects of market volatilities on Human Xtensions and Intercure 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 Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Human Xtensions and Intercure.
Diversification Opportunities for Human Xtensions and Intercure
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Human and Intercure is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Human Xtensions and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure 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 Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Human Xtensions i.e., Human Xtensions and Intercure go up and down completely randomly.
Pair Corralation between Human Xtensions and Intercure
Assuming the 90 days trading horizon Human Xtensions is expected to under-perform the Intercure. In addition to that, Human Xtensions is 1.55 times more volatile than Intercure. It trades about -0.32 of its total potential returns per unit of risk. Intercure is currently generating about -0.43 per unit of volatility. If you would invest 65,990 in Intercure on August 25, 2024 and sell it today you would lose (16,170) from holding Intercure or give up 24.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Human Xtensions vs. Intercure
Performance |
| Timeline |
| Human Xtensions |
| Intercure |
Human Xtensions and Intercure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Human Xtensions and Intercure
The main advantage of trading using opposite Human Xtensions and Intercure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Human Xtensions position performs unexpectedly, Intercure 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 Intercure will offset losses from the drop in Intercure's long position.| Human Xtensions vs. Intercure | Human Xtensions vs. Sofwave Medical | Human Xtensions vs. Epitomee Medical | Human Xtensions vs. Bio View |
| Intercure vs. Together Startup Network | Intercure vs. Delek Group | Intercure vs. Teva Pharmaceutical Industries | Intercure vs. El Al Israel |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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