Correlation Between Isracard and Jacob Finance
Can any of the company-specific risk be diversified away by investing in both Isracard and Jacob Finance 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 Isracard and Jacob Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Isracard and Jacob Finance And, you can compare the effects of market volatilities on Isracard and Jacob Finance 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 Isracard with a short position of Jacob Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isracard and Jacob Finance.
Diversification Opportunities for Isracard and Jacob Finance
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Isracard and Jacob is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Isracard and Jacob Finance And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Finance And and Isracard 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 Isracard are associated (or correlated) with Jacob Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Finance And has no effect on the direction of Isracard i.e., Isracard and Jacob Finance go up and down completely randomly.
Pair Corralation between Isracard and Jacob Finance
Assuming the 90 days trading horizon Isracard is expected to under-perform the Jacob Finance. But the stock apears to be less risky and, when comparing its historical volatility, Isracard is 2.12 times less risky than Jacob Finance. The stock trades about -0.08 of its potential returns per unit of risk. The Jacob Finance And is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 201,400 in Jacob Finance And on August 25, 2024 and sell it today you would earn a total of 6,200 from holding Jacob Finance And or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Isracard vs. Jacob Finance And
Performance |
| Timeline |
| Isracard |
| Jacob Finance And |
Isracard and Jacob Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Isracard and Jacob Finance
The main advantage of trading using opposite Isracard and Jacob Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isracard position performs unexpectedly, Jacob Finance 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 Jacob Finance will offset losses from the drop in Jacob Finance's long position.| Isracard vs. Menif Financial Services | Isracard vs. MLRN Projects and | Isracard vs. Bull Trading And | Isracard vs. Blender Financial Technologies |
| Jacob Finance vs. Spuntech | Jacob Finance vs. Payment Financial Technologies | Jacob Finance vs. Wesure Global Tech | Jacob Finance vs. Blender Financial Technologies |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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