Correlation Between Malam Team and Fattal 1998
Can any of the company-specific risk be diversified away by investing in both Malam Team and Fattal 1998 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 Malam Team and Fattal 1998 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malam Team and Fattal 1998 Holdings, you can compare the effects of market volatilities on Malam Team and Fattal 1998 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 Malam Team with a short position of Fattal 1998. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malam Team and Fattal 1998.
Diversification Opportunities for Malam Team and Fattal 1998
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Malam and Fattal is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Malam Team and Fattal 1998 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fattal 1998 Holdings and Malam Team 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 Malam Team are associated (or correlated) with Fattal 1998. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fattal 1998 Holdings has no effect on the direction of Malam Team i.e., Malam Team and Fattal 1998 go up and down completely randomly.
Pair Corralation between Malam Team and Fattal 1998
Assuming the 90 days trading horizon Malam Team is expected to generate 1.06 times more return on investment than Fattal 1998. However, Malam Team is 1.06 times more volatile than Fattal 1998 Holdings. It trades about 0.29 of its potential returns per unit of risk. Fattal 1998 Holdings is currently generating about 0.17 per unit of risk. If you would invest 563,400 in Malam Team on August 25, 2024 and sell it today you would earn a total of 209,600 from holding Malam Team or generate 37.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malam Team vs. Fattal 1998 Holdings
Performance |
| Timeline |
| Malam Team |
| Fattal 1998 Holdings |
Malam Team and Fattal 1998 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malam Team and Fattal 1998
The main advantage of trading using opposite Malam Team and Fattal 1998 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malam Team position performs unexpectedly, Fattal 1998 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 Fattal 1998 will offset losses from the drop in Fattal 1998's long position.The idea behind Malam Team and Fattal 1998 Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fattal 1998 vs. Delek Group | Fattal 1998 vs. El Al Israel | Fattal 1998 vs. Bank Leumi Le Israel | Fattal 1998 vs. Azrieli Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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