Correlation Between Jacob Finance and Isracard
Can any of the company-specific risk be diversified away by investing in both Jacob Finance and Isracard 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 Jacob Finance and Isracard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Finance And and Isracard, you can compare the effects of market volatilities on Jacob Finance and Isracard 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 Jacob Finance with a short position of Isracard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Finance and Isracard.
Diversification Opportunities for Jacob Finance and Isracard
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jacob and Isracard is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Finance And and Isracard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isracard and Jacob Finance 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 Jacob Finance And are associated (or correlated) with Isracard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isracard has no effect on the direction of Jacob Finance i.e., Jacob Finance and Isracard go up and down completely randomly.
Pair Corralation between Jacob Finance and Isracard
Assuming the 90 days trading horizon Jacob Finance And is expected to generate 2.12 times more return on investment than Isracard. However, Jacob Finance is 2.12 times more volatile than Isracard. It trades about 0.08 of its potential returns per unit of risk. Isracard is currently generating about -0.08 per unit of risk. 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 |
Jacob Finance And vs. Isracard
Performance |
| Timeline |
| Jacob Finance And |
| Isracard |
Jacob Finance and Isracard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Finance and Isracard
The main advantage of trading using opposite Jacob Finance and Isracard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Finance position performs unexpectedly, Isracard 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 Isracard will offset losses from the drop in Isracard's long position.| Jacob Finance vs. Spuntech | Jacob Finance vs. Payment Financial Technologies | Jacob Finance vs. Wesure Global Tech | Jacob Finance vs. Blender Financial Technologies |
| Isracard vs. Menif Financial Services | Isracard vs. MLRN Projects and | Isracard vs. Bull Trading And | Isracard 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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