Correlation Between Intercure and Gencell
Can any of the company-specific risk be diversified away by investing in both Intercure and Gencell 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 Gencell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercure and Gencell, you can compare the effects of market volatilities on Intercure and Gencell 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 Gencell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercure and Gencell.
Diversification Opportunities for Intercure and Gencell
Poor diversification
The 3 months correlation between Intercure and Gencell is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Intercure and Gencell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gencell 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 Gencell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gencell has no effect on the direction of Intercure i.e., Intercure and Gencell go up and down completely randomly.
Pair Corralation between Intercure and Gencell
Assuming the 90 days trading horizon Intercure is expected to under-perform the Gencell. In addition to that, Intercure is 1.35 times more volatile than Gencell. It trades about -0.41 of its total potential returns per unit of risk. Gencell is currently generating about -0.11 per unit of volatility. If you would invest 5,240 in Gencell on August 27, 2024 and sell it today you would lose (300.00) from holding Gencell or give up 5.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercure vs. Gencell
Performance |
| Timeline |
| Intercure |
| Gencell |
Intercure and Gencell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercure and Gencell
The main advantage of trading using opposite Intercure and Gencell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercure position performs unexpectedly, Gencell 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 Gencell will offset losses from the drop in Gencell's long position.| Intercure vs. Netz Hotels | Intercure vs. Migdal Insurance | Intercure vs. Harel Insurance Investments | Intercure vs. Menora Miv Hld |
| Gencell vs. More Mutual Funds | Gencell vs. GODM Investments | Gencell vs. MEITAV INVESTMENTS HOUSE | Gencell vs. RSL Electronics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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