Correlation Between Income Financial and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Income Financial and Senvest Capital 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 Income Financial and Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Income Financial Trust and Senvest Capital, you can compare the effects of market volatilities on Income Financial and Senvest Capital 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 Income Financial with a short position of Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Financial and Senvest Capital.
Diversification Opportunities for Income Financial and Senvest Capital
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Income and Senvest is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Income Financial Trust and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital and Income Financial 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 Income Financial Trust are associated (or correlated) with Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Income Financial i.e., Income Financial and Senvest Capital go up and down completely randomly.
Pair Corralation between Income Financial and Senvest Capital
Assuming the 90 days trading horizon Income Financial Trust is expected to under-perform the Senvest Capital. In addition to that, Income Financial is 1.82 times more volatile than Senvest Capital. It trades about 0.0 of its total potential returns per unit of risk. Senvest Capital is currently generating about 0.02 per unit of volatility. If you would invest 32,400 in Senvest Capital on September 26, 2024 and sell it today you would earn a total of 2,600 from holding Senvest Capital or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Income Financial Trust vs. Senvest Capital
Performance |
| Timeline |
| Income Financial Trust |
| Senvest Capital |
Income Financial and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Income Financial and Senvest Capital
The main advantage of trading using opposite Income Financial and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Financial position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.| Income Financial vs. Dividend Select 15 | Income Financial vs. Global Dividend Growth | Income Financial vs. Brompton Split Banc | Income Financial vs. Real Estate E Commerce |
| Senvest Capital vs. Firan Technology Group | Senvest Capital vs. Brookfield Office Properties | Senvest Capital vs. Income Financial Trust | Senvest Capital vs. Ocumetics Technology Corp |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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