Correlation Between Internet Gold and Electra
Can any of the company-specific risk be diversified away by investing in both Internet Gold and Electra 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 Internet Gold and Electra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Internet Gold Golden and Electra, you can compare the effects of market volatilities on Internet Gold and Electra 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 Internet Gold with a short position of Electra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Gold and Electra.
Diversification Opportunities for Internet Gold and Electra
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Internet and Electra is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Internet Gold Golden and Electra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra and Internet Gold 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 Internet Gold Golden are associated (or correlated) with Electra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra has no effect on the direction of Internet Gold i.e., Internet Gold and Electra go up and down completely randomly.
Pair Corralation between Internet Gold and Electra
Assuming the 90 days trading horizon Internet Gold Golden is expected to under-perform the Electra. In addition to that, Internet Gold is 2.91 times more volatile than Electra. It trades about -0.01 of its total potential returns per unit of risk. Electra is currently generating about 0.08 per unit of volatility. If you would invest 14,908,800 in Electra on September 12, 2024 and sell it today you would earn a total of 7,392,200 from holding Electra or generate 49.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Internet Gold Golden vs. Electra
Performance |
| Timeline |
| Internet Gold Golden |
| Electra |
Internet Gold and Electra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Gold and Electra
The main advantage of trading using opposite Internet Gold and Electra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Gold position performs unexpectedly, Electra 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 Electra will offset losses from the drop in Electra's long position.| Internet Gold vs. Multi Retail Group | Internet Gold vs. Isras Investment | Internet Gold vs. Hiron Trade Investments Industrial | Internet Gold vs. MediPress Health Limited Partnership |
| Electra vs. Alony Hetz Properties | Electra vs. Melisron | Electra vs. Shufersal | Electra vs. Israel Discount Bank |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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