Correlation Between Intercure and Sofwave Medical
Can any of the company-specific risk be diversified away by investing in both Intercure and Sofwave 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 Sofwave Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercure and Sofwave Medical, you can compare the effects of market volatilities on Intercure and Sofwave 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 Sofwave Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercure and Sofwave Medical.
Diversification Opportunities for Intercure and Sofwave Medical
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intercure and Sofwave is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Intercure and Sofwave Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sofwave 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 Sofwave Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sofwave Medical has no effect on the direction of Intercure i.e., Intercure and Sofwave Medical go up and down completely randomly.
Pair Corralation between Intercure and Sofwave Medical
Assuming the 90 days trading horizon Intercure is expected to under-perform the Sofwave Medical. In addition to that, Intercure is 1.23 times more volatile than Sofwave Medical. It trades about -0.02 of its total potential returns per unit of risk. Sofwave Medical is currently generating about 0.04 per unit of volatility. If you would invest 117,000 in Sofwave Medical on November 2, 2024 and sell it today you would earn a total of 52,200 from holding Sofwave Medical or generate 44.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercure vs. Sofwave Medical
Performance |
| Timeline |
| Intercure |
| Sofwave Medical |
Intercure and Sofwave Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercure and Sofwave Medical
The main advantage of trading using opposite Intercure and Sofwave Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercure position performs unexpectedly, Sofwave 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 Sofwave Medical will offset losses from the drop in Sofwave Medical's long position.| Intercure vs. Together Startup Network | Intercure vs. Delek Group | Intercure vs. Teva Pharmaceutical Industries | Intercure vs. El Al Israel |
| Sofwave Medical vs. Unic tech Limited Partnership | Sofwave Medical vs. Millennium Food Tech LP | Sofwave Medical vs. Insuline Medical | Sofwave Medical vs. Spuntech |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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