Correlation Between Ituran Location and 26442UAG9
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By analyzing existing cross correlation between Ituran Location and and DUKE ENERGY PROGRESS, you can compare the effects of market volatilities on Ituran Location and 26442UAG9 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 26442UAG9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ituran Location and 26442UAG9.
Diversification Opportunities for Ituran Location and 26442UAG9
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ituran and 26442UAG9 is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ituran Location and and DUKE ENERGY PROGRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY PROGRESS 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 26442UAG9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY PROGRESS has no effect on the direction of Ituran Location i.e., Ituran Location and 26442UAG9 go up and down completely randomly.
Pair Corralation between Ituran Location and 26442UAG9
Given the investment horizon of 90 days Ituran Location and is expected to generate 3.56 times more return on investment than 26442UAG9. However, Ituran Location is 3.56 times more volatile than DUKE ENERGY PROGRESS. It trades about 0.36 of its potential returns per unit of risk. DUKE ENERGY PROGRESS is currently generating about -0.02 per unit of risk. If you would invest 2,688 in Ituran Location and on September 2, 2024 and sell it today you would earn a total of 328.00 from holding Ituran Location and or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ituran Location and vs. DUKE ENERGY PROGRESS
Performance |
| Timeline |
| Ituran Location |
| DUKE ENERGY PROGRESS |
Ituran Location and 26442UAG9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ituran Location and 26442UAG9
The main advantage of trading using opposite Ituran Location and 26442UAG9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ituran Location position performs unexpectedly, 26442UAG9 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 26442UAG9 will offset losses from the drop in 26442UAG9's long position.| Ituran Location vs. Silicom | Ituran Location vs. Allot Communications | Ituran Location vs. Sapiens International | Ituran Location vs. Formula Systems 1985 |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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