Correlation Between Matrix and Intercure
Can any of the company-specific risk be diversified away by investing in both Matrix and Intercure 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 Matrix and Intercure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matrix and Intercure, you can compare the effects of market volatilities on Matrix and Intercure 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 Matrix with a short position of Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matrix and Intercure.
Diversification Opportunities for Matrix and Intercure
Pay attention - limited upside
The 3 months correlation between Matrix and Intercure is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Matrix and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure and Matrix 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 Matrix are associated (or correlated) with Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Matrix i.e., Matrix and Intercure go up and down completely randomly.
Pair Corralation between Matrix and Intercure
Assuming the 90 days trading horizon Matrix is expected to generate 0.44 times more return on investment than Intercure. However, Matrix is 2.28 times less risky than Intercure. It trades about 0.4 of its potential returns per unit of risk. Intercure is currently generating about -0.46 per unit of risk. If you would invest 747,700 in Matrix on September 4, 2024 and sell it today you would earn a total of 93,800 from holding Matrix or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matrix vs. Intercure
Performance |
| Timeline |
| Matrix |
| Intercure |
Matrix and Intercure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matrix and Intercure
The main advantage of trading using opposite Matrix and Intercure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matrix position performs unexpectedly, Intercure 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 Intercure will offset losses from the drop in Intercure's long position.The idea behind Matrix and Intercure 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.| Intercure vs. Bezeq Israeli Telecommunication | Intercure vs. El Al Israel | Intercure vs. Bank Leumi Le Israel | Intercure vs. Elbit Systems |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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