Correlation Between IBI Inv and Sure Tech
Can any of the company-specific risk be diversified away by investing in both IBI Inv and Sure Tech 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 Sure Tech 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 Sure Tech Investments LP, you can compare the effects of market volatilities on IBI Inv and Sure Tech 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 Sure Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBI Inv and Sure Tech.
Diversification Opportunities for IBI Inv and Sure Tech
Average diversification
The 3 months correlation between IBI and Sure is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding IBI Inv House and Sure Tech Investments LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sure Tech Investments 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 Sure Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sure Tech Investments has no effect on the direction of IBI Inv i.e., IBI Inv and Sure Tech go up and down completely randomly.
Pair Corralation between IBI Inv and Sure Tech
Assuming the 90 days trading horizon IBI Inv House is expected to generate 0.62 times more return on investment than Sure Tech. However, IBI Inv House is 1.63 times less risky than Sure Tech. It trades about 0.25 of its potential returns per unit of risk. Sure Tech Investments LP is currently generating about -0.08 per unit of risk. If you would invest 1,012,538 in IBI Inv House on August 25, 2024 and sell it today you would earn a total of 523,462 from holding IBI Inv House or generate 51.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IBI Inv House vs. Sure Tech Investments LP
Performance |
| Timeline |
| IBI Inv House |
| Sure Tech Investments |
IBI Inv and Sure Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IBI Inv and Sure Tech
The main advantage of trading using opposite IBI Inv and Sure Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBI Inv position performs unexpectedly, Sure Tech 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 Sure Tech will offset losses from the drop in Sure Tech's long position.| IBI Inv vs. Bank Hapoalim | IBI Inv vs. Israel Discount Bank | IBI Inv vs. Mizrahi Tefahot | IBI Inv vs. Bezeq Israeli Telecommunication |
| Sure Tech vs. Altshuler Shaham Financial | Sure Tech vs. Generation Capital | Sure Tech vs. Meitav Dash Investments | Sure Tech vs. IBI Inv House |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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