Correlation Between Libra Insurance and Poalim Ibi
Can any of the company-specific risk be diversified away by investing in both Libra Insurance and Poalim Ibi 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 Libra Insurance and Poalim Ibi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Libra Insurance and Poalim Ibi, you can compare the effects of market volatilities on Libra Insurance and Poalim Ibi 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 Libra Insurance with a short position of Poalim Ibi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Libra Insurance and Poalim Ibi.
Diversification Opportunities for Libra Insurance and Poalim Ibi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Libra and Poalim is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Libra Insurance and Poalim Ibi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poalim Ibi and Libra Insurance 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 Libra Insurance are associated (or correlated) with Poalim Ibi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poalim Ibi has no effect on the direction of Libra Insurance i.e., Libra Insurance and Poalim Ibi go up and down completely randomly.
Pair Corralation between Libra Insurance and Poalim Ibi
Assuming the 90 days trading horizon Libra Insurance is expected to generate 1.17 times more return on investment than Poalim Ibi. However, Libra Insurance is 1.17 times more volatile than Poalim Ibi. It trades about 0.21 of its potential returns per unit of risk. Poalim Ibi is currently generating about 0.04 per unit of risk. If you would invest 36,109 in Libra Insurance on September 14, 2024 and sell it today you would earn a total of 64,291 from holding Libra Insurance or generate 178.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.48% |
| Values | Daily Returns |
Libra Insurance vs. Poalim Ibi
Performance |
| Timeline |
| Libra Insurance |
| Poalim Ibi |
Libra Insurance and Poalim Ibi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Libra Insurance and Poalim Ibi
The main advantage of trading using opposite Libra Insurance and Poalim Ibi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Libra Insurance position performs unexpectedly, Poalim Ibi 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 Poalim Ibi will offset losses from the drop in Poalim Ibi's long position.| Libra Insurance vs. Suny Cellular Communication | Libra Insurance vs. Bio Meat Foodtech | Libra Insurance vs. Aura Investments | Libra Insurance vs. Victory Supermarket Chain |
| Poalim Ibi vs. Bio Meat Foodtech | Poalim Ibi vs. Millennium Food Tech LP | Poalim Ibi vs. Skyline Investments | Poalim Ibi vs. Willy Food |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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