Correlation Between Isras Investment and Identi Healthcare
Can any of the company-specific risk be diversified away by investing in both Isras Investment and Identi Healthcare 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 Isras Investment and Identi Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Isras Investment and Identi Healthcare, you can compare the effects of market volatilities on Isras Investment and Identi Healthcare 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 Isras Investment with a short position of Identi Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isras Investment and Identi Healthcare.
Diversification Opportunities for Isras Investment and Identi Healthcare
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Isras and Identi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Isras Investment and Identi Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identi Healthcare and Isras Investment 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 Isras Investment are associated (or correlated) with Identi Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identi Healthcare has no effect on the direction of Isras Investment i.e., Isras Investment and Identi Healthcare go up and down completely randomly.
Pair Corralation between Isras Investment and Identi Healthcare
Assuming the 90 days trading horizon Isras Investment is expected to generate 0.54 times more return on investment than Identi Healthcare. However, Isras Investment is 1.86 times less risky than Identi Healthcare. It trades about 0.42 of its potential returns per unit of risk. Identi Healthcare is currently generating about -0.61 per unit of risk. If you would invest 7,575,000 in Isras Investment on August 29, 2024 and sell it today you would earn a total of 975,000 from holding Isras Investment or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Isras Investment vs. Identi Healthcare
Performance |
| Timeline |
| Isras Investment |
| Identi Healthcare |
Isras Investment and Identi Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Isras Investment and Identi Healthcare
The main advantage of trading using opposite Isras Investment and Identi Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isras Investment position performs unexpectedly, Identi Healthcare 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 Identi Healthcare will offset losses from the drop in Identi Healthcare's long position.| Isras Investment vs. Fox Wizel | Isras Investment vs. Amot Investments | Isras Investment vs. Harel Insurance Investments | Isras Investment vs. Opal Balance |
| Identi Healthcare vs. Imed Infinity Medical Limited | Identi Healthcare vs. B Communications | Identi Healthcare vs. Holmes Place International | Identi Healthcare 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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