Correlation Between Ituran Location and FEDEX
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By analyzing existing cross correlation between Ituran Location and and FEDEX P 42, you can compare the effects of market volatilities on Ituran Location and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ituran Location and FEDEX.
Diversification Opportunities for Ituran Location and FEDEX
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ituran and FEDEX is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ituran Location and and FEDEX P 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 42 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 42 has no effect on the direction of Ituran Location i.e., Ituran Location and FEDEX go up and down completely randomly.
Pair Corralation between Ituran Location and FEDEX
Given the investment horizon of 90 days Ituran Location and is expected to generate 5.46 times more return on investment than FEDEX. However, Ituran Location is 5.46 times more volatile than FEDEX P 42. It trades about 0.25 of its potential returns per unit of risk. FEDEX P 42 is currently generating about 0.13 per unit of risk. If you would invest 3,318 in Ituran Location and on November 28, 2024 and sell it today you would earn a total of 699.00 from holding Ituran Location and or generate 21.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ituran Location and vs. FEDEX P 42
Performance |
| Timeline |
| Ituran Location |
| FEDEX P 42 |
Ituran Location and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ituran Location and FEDEX
The main advantage of trading using opposite Ituran Location and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ituran Location position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| Ituran Location vs. Silicom | Ituran Location vs. Allot Communications | Ituran Location vs. Sapiens International | Ituran Location vs. Formula Systems 1985 |
| FEDEX vs. Altair Engineering | FEDEX vs. WPP PLC ADR | FEDEX vs. Ryanair Holdings PLC | FEDEX vs. Mirriad Advertising plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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