Correlation Between IBI Inv and Tamar Petroleum
Can any of the company-specific risk be diversified away by investing in both IBI Inv and Tamar Petroleum 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 Tamar Petroleum 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 Tamar Petroleum, you can compare the effects of market volatilities on IBI Inv and Tamar Petroleum 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 Tamar Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBI Inv and Tamar Petroleum.
Diversification Opportunities for IBI Inv and Tamar Petroleum
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IBI and Tamar is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding IBI Inv House and Tamar Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tamar Petroleum 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 Tamar Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tamar Petroleum has no effect on the direction of IBI Inv i.e., IBI Inv and Tamar Petroleum go up and down completely randomly.
Pair Corralation between IBI Inv and Tamar Petroleum
Assuming the 90 days trading horizon IBI Inv House is expected to generate 0.66 times more return on investment than Tamar Petroleum. However, IBI Inv House is 1.52 times less risky than Tamar Petroleum. It trades about 0.61 of its potential returns per unit of risk. Tamar Petroleum is currently generating about 0.22 per unit of risk. If you would invest 1,594,000 in IBI Inv House on October 31, 2024 and sell it today you would earn a total of 345,000 from holding IBI Inv House or generate 21.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.44% |
| Values | Daily Returns |
IBI Inv House vs. Tamar Petroleum
Performance |
| Timeline |
| IBI Inv House |
| Tamar Petroleum |
IBI Inv and Tamar Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IBI Inv and Tamar Petroleum
The main advantage of trading using opposite IBI Inv and Tamar Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBI Inv position performs unexpectedly, Tamar Petroleum 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 Tamar Petroleum will offset losses from the drop in Tamar Petroleum's long position.| IBI Inv vs. Meitav Dash Investments | IBI Inv vs. YD More Investments | IBI Inv vs. Hiron Trade Investments Industrial | IBI Inv vs. Retailors |
| Tamar Petroleum vs. Atreyu Capital Markets | Tamar Petroleum vs. IBI Inv House | Tamar Petroleum vs. Delek Automotive Systems | Tamar Petroleum 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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