Correlation Between Lachish and Feat Fund
Can any of the company-specific risk be diversified away by investing in both Lachish and Feat Fund 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 Lachish and Feat Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lachish and Feat Fund Investments, you can compare the effects of market volatilities on Lachish and Feat Fund 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 Lachish with a short position of Feat Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lachish and Feat Fund.
Diversification Opportunities for Lachish and Feat Fund
Very weak diversification
The 3 months correlation between Lachish and Feat is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lachish and Feat Fund Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feat Fund Investments and Lachish 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 Lachish are associated (or correlated) with Feat Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feat Fund Investments has no effect on the direction of Lachish i.e., Lachish and Feat Fund go up and down completely randomly.
Pair Corralation between Lachish and Feat Fund
Assuming the 90 days trading horizon Lachish is expected to generate 0.51 times more return on investment than Feat Fund. However, Lachish is 1.96 times less risky than Feat Fund. It trades about 0.09 of its potential returns per unit of risk. Feat Fund Investments is currently generating about 0.0 per unit of risk. If you would invest 106,341 in Lachish on September 5, 2024 and sell it today you would earn a total of 113,559 from holding Lachish or generate 106.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Lachish vs. Feat Fund Investments
Performance |
| Timeline |
| Lachish |
| Feat Fund Investments |
Lachish and Feat Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lachish and Feat Fund
The main advantage of trading using opposite Lachish and Feat Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lachish position performs unexpectedly, Feat Fund 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 Feat Fund will offset losses from the drop in Feat Fund's long position.| Lachish vs. Feat Fund Investments | Lachish vs. Amanet Management Systems | Lachish vs. Aura Investments | Lachish vs. Terminal X Online |
| Feat Fund vs. Nice | Feat Fund vs. The Gold Bond | Feat Fund vs. Bank Leumi Le Israel | Feat Fund vs. ICL Israel Chemicals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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