Correlation Between Israel China and Sure Tech
Can any of the company-specific risk be diversified away by investing in both Israel China 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 Israel China and Sure Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Israel China Biotechnology and Sure Tech Investments LP, you can compare the effects of market volatilities on Israel China 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 Israel China with a short position of Sure Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Israel China and Sure Tech.
Diversification Opportunities for Israel China and Sure Tech
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Israel and Sure is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Israel China Biotechnology 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 Israel China 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 Israel China Biotechnology 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 Israel China i.e., Israel China and Sure Tech go up and down completely randomly.
Pair Corralation between Israel China and Sure Tech
Assuming the 90 days trading horizon Israel China Biotechnology is expected to generate 2.13 times more return on investment than Sure Tech. However, Israel China is 2.13 times more volatile than Sure Tech Investments LP. It trades about 0.06 of its potential returns per unit of risk. Sure Tech Investments LP is currently generating about 0.11 per unit of risk. If you would invest 50,000 in Israel China Biotechnology on October 26, 2024 and sell it today you would earn a total of 3,970 from holding Israel China Biotechnology or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Israel China Biotechnology vs. Sure Tech Investments LP
Performance |
| Timeline |
| Israel China Biotech |
| Sure Tech Investments |
Israel China and Sure Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Israel China and Sure Tech
The main advantage of trading using opposite Israel China and Sure Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Israel China 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.| Israel China vs. Clal Biotechnology Industries | Israel China vs. YH Dimri Construction | Israel China vs. Bezeq Israeli Telecommunication | Israel China vs. Dan Hotels |
| Sure Tech vs. Electreon Wireless | Sure Tech vs. Bezeq Israeli Telecommunication | Sure Tech vs. Batm Advanced Communications | Sure Tech vs. Isras 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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