Correlation Between Intercure and Epitomee Medical
Can any of the company-specific risk be diversified away by investing in both Intercure and Epitomee Medical 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 Intercure and Epitomee Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercure and Epitomee Medical, you can compare the effects of market volatilities on Intercure and Epitomee Medical 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 Intercure with a short position of Epitomee Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercure and Epitomee Medical.
Diversification Opportunities for Intercure and Epitomee Medical
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intercure and Epitomee is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Intercure and Epitomee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epitomee Medical and Intercure 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 Intercure are associated (or correlated) with Epitomee Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epitomee Medical has no effect on the direction of Intercure i.e., Intercure and Epitomee Medical go up and down completely randomly.
Pair Corralation between Intercure and Epitomee Medical
Assuming the 90 days trading horizon Intercure is expected to under-perform the Epitomee Medical. But the stock apears to be less risky and, when comparing its historical volatility, Intercure is 1.16 times less risky than Epitomee Medical. The stock trades about -0.34 of its potential returns per unit of risk. The Epitomee Medical is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 114,800 in Epitomee Medical on August 29, 2024 and sell it today you would lose (21,880) from holding Epitomee Medical or give up 19.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercure vs. Epitomee Medical
Performance |
| Timeline |
| Intercure |
| Epitomee Medical |
Intercure and Epitomee Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercure and Epitomee Medical
The main advantage of trading using opposite Intercure and Epitomee Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercure position performs unexpectedly, Epitomee Medical 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 Epitomee Medical will offset losses from the drop in Epitomee Medical's long position.| Intercure vs. Netz Hotels | Intercure vs. Migdal Insurance | Intercure vs. Harel Insurance Investments | Intercure vs. Menora Miv Hld |
| Epitomee Medical vs. Intercure | Epitomee Medical vs. Sofwave Medical | Epitomee Medical vs. Bio View | Epitomee Medical vs. Elbit Imaging |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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