Correlation Between Intercure and Malam Team
Can any of the company-specific risk be diversified away by investing in both Intercure and Malam Team 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 Malam Team into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercure and Malam Team, you can compare the effects of market volatilities on Intercure and Malam Team 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 Malam Team. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercure and Malam Team.
Diversification Opportunities for Intercure and Malam Team
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intercure and Malam is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Intercure and Malam Team in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malam Team 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 Malam Team. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malam Team has no effect on the direction of Intercure i.e., Intercure and Malam Team go up and down completely randomly.
Pair Corralation between Intercure and Malam Team
Assuming the 90 days trading horizon Intercure is expected to under-perform the Malam Team. In addition to that, Intercure is 1.78 times more volatile than Malam Team. It trades about -0.06 of its total potential returns per unit of risk. Malam Team is currently generating about 0.02 per unit of volatility. If you would invest 781,717 in Malam Team on September 4, 2024 and sell it today you would earn a total of 37,383 from holding Malam Team or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercure vs. Malam Team
Performance |
| Timeline |
| Intercure |
| Malam Team |
Intercure and Malam Team Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercure and Malam Team
The main advantage of trading using opposite Intercure and Malam Team positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercure position performs unexpectedly, Malam Team 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 Malam Team will offset losses from the drop in Malam Team's long position.| Intercure vs. Bezeq Israeli Telecommunication | Intercure vs. El Al Israel | Intercure vs. Bank Leumi Le Israel | Intercure vs. Elbit Systems |
| Malam Team vs. Palram | Malam Team vs. Shagrir Group Vehicle | Malam Team vs. EN Shoham Business | Malam Team vs. Lapidoth |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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