Correlation Between Millennium Food and Electra Real
Can any of the company-specific risk be diversified away by investing in both Millennium Food and Electra Real 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 Electra Real 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 Electra Real Estate, you can compare the effects of market volatilities on Millennium Food and Electra Real 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 Electra Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Food and Electra Real.
Diversification Opportunities for Millennium Food and Electra Real
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Millennium and Electra is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Food Tech LP and Electra Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra Real Estate 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 Electra Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra Real Estate has no effect on the direction of Millennium Food i.e., Millennium Food and Electra Real go up and down completely randomly.
Pair Corralation between Millennium Food and Electra Real
Assuming the 90 days trading horizon Millennium Food Tech LP is expected to under-perform the Electra Real. In addition to that, Millennium Food is 1.77 times more volatile than Electra Real Estate. It trades about -0.02 of its total potential returns per unit of risk. Electra Real Estate is currently generating about 0.04 per unit of volatility. If you would invest 378,614 in Electra Real Estate on August 26, 2024 and sell it today you would earn a total of 46,786 from holding Electra Real Estate or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Millennium Food Tech LP vs. Electra Real Estate
Performance |
| Timeline |
| Millennium Food Tech |
| Electra Real Estate |
Millennium Food and Electra Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millennium Food and Electra Real
The main advantage of trading using opposite Millennium Food and Electra Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millennium Food position performs unexpectedly, Electra Real 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 Electra Real will offset losses from the drop in Electra Real's long position.| Millennium Food vs. Strauss Group | Millennium Food vs. Neto Malinda | Millennium Food vs. Willy Food | Millennium Food vs. Savoreat |
| Electra Real vs. Azrieli Group | Electra Real vs. Israel Discount Bank | Electra Real vs. Alony Hetz Properties | Electra Real vs. Shufersal |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |