Correlation Between Intercure and Netz Hotels
Can any of the company-specific risk be diversified away by investing in both Intercure and Netz Hotels 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 Netz Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercure and Netz Hotels, you can compare the effects of market volatilities on Intercure and Netz Hotels 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 Netz Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercure and Netz Hotels.
Diversification Opportunities for Intercure and Netz Hotels
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intercure and Netz is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Intercure and Netz Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netz Hotels 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 Netz Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netz Hotels has no effect on the direction of Intercure i.e., Intercure and Netz Hotels go up and down completely randomly.
Pair Corralation between Intercure and Netz Hotels
Assuming the 90 days trading horizon Intercure is expected to under-perform the Netz Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Intercure is 1.94 times less risky than Netz Hotels. The stock trades about -0.05 of its potential returns per unit of risk. The Netz Hotels is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,100 in Netz Hotels on August 30, 2024 and sell it today you would lose (1,750) from holding Netz Hotels or give up 34.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercure vs. Netz Hotels
Performance |
| Timeline |
| Intercure |
| Netz Hotels |
Intercure and Netz Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercure and Netz Hotels
The main advantage of trading using opposite Intercure and Netz Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercure position performs unexpectedly, Netz Hotels 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 Netz Hotels will offset losses from the drop in Netz Hotels' long position.| Intercure vs. Together Startup Network | Intercure vs. Delek Group | Intercure vs. Teva Pharmaceutical Industries | Intercure vs. El Al Israel |
| Netz Hotels vs. Direct Capital Investments | Netz Hotels vs. B Communications | Netz Hotels vs. Holmes Place International | Netz Hotels vs. Nova |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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