Correlation Between Israel Land and Glassbox
Can any of the company-specific risk be diversified away by investing in both Israel Land and Glassbox 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 Land and Glassbox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Israel Land Development and Glassbox, you can compare the effects of market volatilities on Israel Land and Glassbox 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 Land with a short position of Glassbox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Israel Land and Glassbox.
Diversification Opportunities for Israel Land and Glassbox
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Israel and Glassbox is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Israel Land Development and Glassbox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glassbox and Israel Land 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 Land Development are associated (or correlated) with Glassbox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glassbox has no effect on the direction of Israel Land i.e., Israel Land and Glassbox go up and down completely randomly.
Pair Corralation between Israel Land and Glassbox
Assuming the 90 days trading horizon Israel Land is expected to generate 1.37 times less return on investment than Glassbox. But when comparing it to its historical volatility, Israel Land Development is 2.23 times less risky than Glassbox. It trades about 0.11 of its potential returns per unit of risk. Glassbox is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 377,400 in Glassbox on August 29, 2024 and sell it today you would earn a total of 28,500 from holding Glassbox or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.74% |
| Values | Daily Returns |
Israel Land Development vs. Glassbox
Performance |
| Timeline |
| Israel Land Development |
| Glassbox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Israel Land and Glassbox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Israel Land and Glassbox
The main advantage of trading using opposite Israel Land and Glassbox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Israel Land position performs unexpectedly, Glassbox 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 Glassbox will offset losses from the drop in Glassbox's long position.| Israel Land vs. Lapidoth | Israel Land vs. Ilex Medical | Israel Land vs. Aerodrome Group | Israel Land vs. Opal Balance |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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