Correlation Between IBI Inv and Cohen Dev
Can any of the company-specific risk be diversified away by investing in both IBI Inv and Cohen Dev 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 IBI Inv and Cohen Dev into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBI Inv House and Cohen Dev, you can compare the effects of market volatilities on IBI Inv and Cohen Dev 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 IBI Inv with a short position of Cohen Dev. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBI Inv and Cohen Dev.
Diversification Opportunities for IBI Inv and Cohen Dev
Very poor diversification
The 3 months correlation between IBI and Cohen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding IBI Inv House and Cohen Dev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Dev and IBI Inv 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 IBI Inv House are associated (or correlated) with Cohen Dev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Dev has no effect on the direction of IBI Inv i.e., IBI Inv and Cohen Dev go up and down completely randomly.
Pair Corralation between IBI Inv and Cohen Dev
Assuming the 90 days trading horizon IBI Inv House is expected to generate 0.6 times more return on investment than Cohen Dev. However, IBI Inv House is 1.66 times less risky than Cohen Dev. It trades about 0.66 of its potential returns per unit of risk. Cohen Dev is currently generating about 0.26 per unit of risk. If you would invest 1,755,000 in IBI Inv House on November 3, 2024 and sell it today you would earn a total of 263,000 from holding IBI Inv House or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
IBI Inv House vs. Cohen Dev
Performance |
| Timeline |
| IBI Inv House |
| Cohen Dev |
IBI Inv and Cohen Dev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IBI Inv and Cohen Dev
The main advantage of trading using opposite IBI Inv and Cohen Dev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBI Inv position performs unexpectedly, Cohen Dev 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 Cohen Dev will offset losses from the drop in Cohen Dev's long position.| IBI Inv vs. Clal Insurance Enterprises | IBI Inv vs. Israel Discount Bank | IBI Inv vs. Automatic Bank Services | IBI Inv vs. Scope Metals Group |
| Cohen Dev vs. Atreyu Capital Markets | Cohen Dev vs. IBI Inv House | Cohen Dev vs. Delek Automotive Systems | Cohen Dev vs. Scope Metals Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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