Correlation Between Ituran Location and Anterix
Can any of the company-specific risk be diversified away by investing in both Ituran Location and Anterix 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 Ituran Location and Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ituran Location and and Anterix, you can compare the effects of market volatilities on Ituran Location and Anterix 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 Ituran Location with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ituran Location and Anterix.
Diversification Opportunities for Ituran Location and Anterix
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ituran and Anterix is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ituran Location and and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Ituran Location 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 Ituran Location and are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Ituran Location i.e., Ituran Location and Anterix go up and down completely randomly.
Pair Corralation between Ituran Location and Anterix
Given the investment horizon of 90 days Ituran Location and is expected to generate 0.56 times more return on investment than Anterix. However, Ituran Location and is 1.79 times less risky than Anterix. It trades about 0.12 of its potential returns per unit of risk. Anterix is currently generating about -0.01 per unit of risk. If you would invest 2,751 in Ituran Location and on September 3, 2024 and sell it today you would earn a total of 265.00 from holding Ituran Location and or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ituran Location and vs. Anterix
Performance |
| Timeline |
| Ituran Location |
| Anterix |
Ituran Location and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ituran Location and Anterix
The main advantage of trading using opposite Ituran Location and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ituran Location position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Ituran Location vs. Silicom | Ituran Location vs. Allot Communications | Ituran Location vs. Sapiens International | Ituran Location vs. Formula Systems 1985 |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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