Correlation Between Inbar Group and Buff Technologies
Can any of the company-specific risk be diversified away by investing in both Inbar Group and Buff Technologies 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 Inbar Group and Buff Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inbar Group Finance and Buff Technologies, you can compare the effects of market volatilities on Inbar Group and Buff Technologies 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 Inbar Group with a short position of Buff Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inbar Group and Buff Technologies.
Diversification Opportunities for Inbar Group and Buff Technologies
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inbar and Buff is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Inbar Group Finance and Buff Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buff Technologies and Inbar Group 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 Inbar Group Finance are associated (or correlated) with Buff Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buff Technologies has no effect on the direction of Inbar Group i.e., Inbar Group and Buff Technologies go up and down completely randomly.
Pair Corralation between Inbar Group and Buff Technologies
Assuming the 90 days trading horizon Inbar Group Finance is expected to generate 11.25 times more return on investment than Buff Technologies. However, Inbar Group is 11.25 times more volatile than Buff Technologies. It trades about 0.04 of its potential returns per unit of risk. Buff Technologies is currently generating about -0.07 per unit of risk. If you would invest 10,100 in Inbar Group Finance on August 30, 2024 and sell it today you would earn a total of 21,900 from holding Inbar Group Finance or generate 216.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inbar Group Finance vs. Buff Technologies
Performance |
| Timeline |
| Inbar Group Finance |
| Buff Technologies |
Inbar Group and Buff Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inbar Group and Buff Technologies
The main advantage of trading using opposite Inbar Group and Buff Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inbar Group position performs unexpectedly, Buff Technologies 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 Buff Technologies will offset losses from the drop in Buff Technologies' long position.| Inbar Group vs. Harel Insurance Investments | Inbar Group vs. Unicorn Technologies | Inbar Group vs. Israel China Biotechnology | Inbar Group vs. B Communications |
| Buff Technologies vs. Opal Balance | Buff Technologies vs. B Communications | Buff Technologies vs. Holmes Place International | Buff Technologies vs. Nova |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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