Correlation Between YD More and Aura Investments
Can any of the company-specific risk be diversified away by investing in both YD More and Aura Investments 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 YD More and Aura Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YD More Investments and Aura Investments, you can compare the effects of market volatilities on YD More and Aura Investments 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 YD More with a short position of Aura Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of YD More and Aura Investments.
Diversification Opportunities for YD More and Aura Investments
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MRIN and Aura is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding YD More Investments and Aura Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura Investments and YD More 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 YD More Investments are associated (or correlated) with Aura Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Investments has no effect on the direction of YD More i.e., YD More and Aura Investments go up and down completely randomly.
Pair Corralation between YD More and Aura Investments
Assuming the 90 days trading horizon YD More Investments is expected to generate 1.87 times more return on investment than Aura Investments. However, YD More is 1.87 times more volatile than Aura Investments. It trades about 0.33 of its potential returns per unit of risk. Aura Investments is currently generating about 0.12 per unit of risk. If you would invest 120,403 in YD More Investments on September 18, 2024 and sell it today you would earn a total of 23,897 from holding YD More Investments or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.44% |
| Values | Daily Returns |
YD More Investments vs. Aura Investments
Performance |
| Timeline |
| YD More Investments |
| Aura Investments |
YD More and Aura Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YD More and Aura Investments
The main advantage of trading using opposite YD More and Aura Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YD More position performs unexpectedly, Aura Investments 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 Aura Investments will offset losses from the drop in Aura Investments' long position.| YD More vs. Bank Hapoalim | YD More vs. Israel Discount Bank | YD More vs. Mizrahi Tefahot | YD More vs. Bezeq Israeli Telecommunication |
| Aura Investments vs. Isras Investment | Aura Investments vs. Sella Real Estate | Aura Investments vs. Harel Insurance Investments | Aura Investments vs. B Communications |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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