Correlation Between Levinski Ofer and Augwind Energy
Can any of the company-specific risk be diversified away by investing in both Levinski Ofer and Augwind Energy 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 Levinski Ofer and Augwind Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levinski Ofer and Augwind Energy Tech, you can compare the effects of market volatilities on Levinski Ofer and Augwind Energy 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 Levinski Ofer with a short position of Augwind Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levinski Ofer and Augwind Energy.
Diversification Opportunities for Levinski Ofer and Augwind Energy
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Levinski and Augwind is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Levinski Ofer and Augwind Energy Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augwind Energy Tech and Levinski Ofer 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 Levinski Ofer are associated (or correlated) with Augwind Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augwind Energy Tech has no effect on the direction of Levinski Ofer i.e., Levinski Ofer and Augwind Energy go up and down completely randomly.
Pair Corralation between Levinski Ofer and Augwind Energy
Assuming the 90 days trading horizon Levinski Ofer is expected to generate 1.76 times less return on investment than Augwind Energy. But when comparing it to its historical volatility, Levinski Ofer is 1.71 times less risky than Augwind Energy. It trades about 0.21 of its potential returns per unit of risk. Augwind Energy Tech is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 50,000 in Augwind Energy Tech on September 5, 2024 and sell it today you would earn a total of 13,420 from holding Augwind Energy Tech or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levinski Ofer vs. Augwind Energy Tech
Performance |
| Timeline |
| Levinski Ofer |
| Augwind Energy Tech |
Levinski Ofer and Augwind Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levinski Ofer and Augwind Energy
The main advantage of trading using opposite Levinski Ofer and Augwind Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levinski Ofer position performs unexpectedly, Augwind Energy 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 Augwind Energy will offset losses from the drop in Augwind Energy's long position.| Levinski Ofer vs. Augwind Energy Tech | Levinski Ofer vs. Enlight Renewable Energy | Levinski Ofer vs. Maytronics | Levinski Ofer vs. Fattal 1998 Holdings |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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