Correlation Between Levinstein Prop and Isras Investment
Can any of the company-specific risk be diversified away by investing in both Levinstein Prop and Isras Investment 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 Levinstein Prop and Isras Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levinstein Prop and Isras Investment, you can compare the effects of market volatilities on Levinstein Prop and Isras Investment 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 Levinstein Prop with a short position of Isras Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levinstein Prop and Isras Investment.
Diversification Opportunities for Levinstein Prop and Isras Investment
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Levinstein and Isras is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Levinstein Prop and Isras Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isras Investment and Levinstein Prop 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 Levinstein Prop are associated (or correlated) with Isras Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isras Investment has no effect on the direction of Levinstein Prop i.e., Levinstein Prop and Isras Investment go up and down completely randomly.
Pair Corralation between Levinstein Prop and Isras Investment
Assuming the 90 days trading horizon Levinstein Prop is expected to generate 1.31 times more return on investment than Isras Investment. However, Levinstein Prop is 1.31 times more volatile than Isras Investment. It trades about 0.16 of its potential returns per unit of risk. Isras Investment is currently generating about 0.2 per unit of risk. If you would invest 620,100 in Levinstein Prop on August 28, 2024 and sell it today you would earn a total of 109,900 from holding Levinstein Prop or generate 17.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Levinstein Prop vs. Isras Investment
Performance |
| Timeline |
| Levinstein Prop |
| Isras Investment |
Levinstein Prop and Isras Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levinstein Prop and Isras Investment
The main advantage of trading using opposite Levinstein Prop and Isras Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levinstein Prop position performs unexpectedly, Isras Investment 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 Isras Investment will offset losses from the drop in Isras Investment's long position.| Levinstein Prop vs. Israel Canada | Levinstein Prop vs. Delek Group | Levinstein Prop vs. Shikun Binui | Levinstein Prop vs. Israel Discount Bank |
| Isras Investment vs. Alony Hetz Properties | Isras Investment vs. Fox Wizel | Isras Investment vs. Amot Investments | Isras Investment vs. Harel Insurance Investments |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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