Correlation Between Millennium Food and Abra Information
Can any of the company-specific risk be diversified away by investing in both Millennium Food and Abra Information 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 Millennium Food and Abra Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Millennium Food Tech LP and Abra Information Technologies, you can compare the effects of market volatilities on Millennium Food and Abra Information 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 Millennium Food with a short position of Abra Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Food and Abra Information.
Diversification Opportunities for Millennium Food and Abra Information
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Millennium and Abra is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Food Tech LP and Abra Information Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abra Information Tec and Millennium Food 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 Millennium Food Tech LP are associated (or correlated) with Abra Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abra Information Tec has no effect on the direction of Millennium Food i.e., Millennium Food and Abra Information go up and down completely randomly.
Pair Corralation between Millennium Food and Abra Information
Assuming the 90 days trading horizon Millennium Food Tech LP is expected to generate 1.18 times more return on investment than Abra Information. However, Millennium Food is 1.18 times more volatile than Abra Information Technologies. It trades about -0.04 of its potential returns per unit of risk. Abra Information Technologies is currently generating about -0.43 per unit of risk. If you would invest 19,180 in Millennium Food Tech LP on August 30, 2024 and sell it today you would lose (380.00) from holding Millennium Food Tech LP or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Millennium Food Tech LP vs. Abra Information Technologies
Performance |
| Timeline |
| Millennium Food Tech |
| Abra Information Tec |
Millennium Food and Abra Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millennium Food and Abra Information
The main advantage of trading using opposite Millennium Food and Abra Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millennium Food position performs unexpectedly, Abra Information 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 Abra Information will offset losses from the drop in Abra Information's long position.| Millennium Food vs. Willy Food | Millennium Food vs. B Communications | Millennium Food vs. Nova | Millennium Food vs. Petrochemical |
| Abra Information vs. GODM Investments | Abra Information vs. ICL Israel Chemicals | Abra Information vs. Meitav Dash Investments | Abra Information vs. Silver Castle Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |