Correlation Between Inbar Group and Identi Healthcare
Can any of the company-specific risk be diversified away by investing in both Inbar Group and Identi Healthcare 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 Identi Healthcare 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 Identi Healthcare, you can compare the effects of market volatilities on Inbar Group and Identi Healthcare 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 Identi Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inbar Group and Identi Healthcare.
Diversification Opportunities for Inbar Group and Identi Healthcare
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inbar and Identi is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Inbar Group Finance and Identi Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identi Healthcare 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 Identi Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identi Healthcare has no effect on the direction of Inbar Group i.e., Inbar Group and Identi Healthcare go up and down completely randomly.
Pair Corralation between Inbar Group and Identi Healthcare
Assuming the 90 days trading horizon Inbar Group Finance is expected to generate 0.6 times more return on investment than Identi Healthcare. However, Inbar Group Finance is 1.67 times less risky than Identi Healthcare. It trades about 0.03 of its potential returns per unit of risk. Identi Healthcare is currently generating about 0.01 per unit of risk. If you would invest 33,060 in Inbar Group Finance on September 3, 2024 and sell it today you would lose (640.00) from holding Inbar Group Finance or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inbar Group Finance vs. Identi Healthcare
Performance |
| Timeline |
| Inbar Group Finance |
| Identi Healthcare |
Inbar Group and Identi Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inbar Group and Identi Healthcare
The main advantage of trading using opposite Inbar Group and Identi Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inbar Group position performs unexpectedly, Identi Healthcare 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 Identi Healthcare will offset losses from the drop in Identi Healthcare's long position.| Inbar Group vs. Suny Cellular Communication | Inbar Group vs. More Mutual Funds | Inbar Group vs. MEITAV INVESTMENTS HOUSE | Inbar Group vs. Tower Semiconductor |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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