Correlation Between Opal Balance and Nawi Brothers
Can any of the company-specific risk be diversified away by investing in both Opal Balance and Nawi Brothers 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 Opal Balance and Nawi Brothers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opal Balance and Nawi Brothers Group, you can compare the effects of market volatilities on Opal Balance and Nawi Brothers 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 Opal Balance with a short position of Nawi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opal Balance and Nawi Brothers.
Diversification Opportunities for Opal Balance and Nawi Brothers
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Opal and Nawi is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Opal Balance and Nawi Brothers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nawi Brothers Group and Opal Balance 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 Opal Balance are associated (or correlated) with Nawi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nawi Brothers Group has no effect on the direction of Opal Balance i.e., Opal Balance and Nawi Brothers go up and down completely randomly.
Pair Corralation between Opal Balance and Nawi Brothers
Assuming the 90 days trading horizon Opal Balance is expected to generate 1.17 times less return on investment than Nawi Brothers. In addition to that, Opal Balance is 1.33 times more volatile than Nawi Brothers Group. It trades about 0.22 of its total potential returns per unit of risk. Nawi Brothers Group is currently generating about 0.34 per unit of volatility. If you would invest 241,467 in Nawi Brothers Group on November 3, 2024 and sell it today you would earn a total of 173,333 from holding Nawi Brothers Group or generate 71.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opal Balance vs. Nawi Brothers Group
Performance |
| Timeline |
| Opal Balance |
| Nawi Brothers Group |
Opal Balance and Nawi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opal Balance and Nawi Brothers
The main advantage of trading using opposite Opal Balance and Nawi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opal Balance position performs unexpectedly, Nawi Brothers 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 Nawi Brothers will offset losses from the drop in Nawi Brothers' long position.| Opal Balance vs. Nawi Brothers Group | Opal Balance vs. EN Shoham Business | Opal Balance vs. Peninsula Group | Opal Balance vs. Shikun Binui |
| Nawi Brothers vs. Migdal Insurance | Nawi Brothers vs. Clal Insurance Enterprises | Nawi Brothers vs. Bank Hapoalim | Nawi Brothers vs. Bank Leumi Le Israel |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |