Correlation Between Orbit Technologies and Clal Industries
Can any of the company-specific risk be diversified away by investing in both Orbit Technologies and Clal Industries 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 Orbit Technologies and Clal Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbit Technologies and Clal Industries and, you can compare the effects of market volatilities on Orbit Technologies and Clal Industries 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 Orbit Technologies with a short position of Clal Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbit Technologies and Clal Industries.
Diversification Opportunities for Orbit Technologies and Clal Industries
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Orbit and Clal is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Technologies and Clal Industries and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clal Industries and Orbit Technologies 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 Orbit Technologies are associated (or correlated) with Clal Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clal Industries has no effect on the direction of Orbit Technologies i.e., Orbit Technologies and Clal Industries go up and down completely randomly.
Pair Corralation between Orbit Technologies and Clal Industries
Assuming the 90 days trading horizon Orbit Technologies is expected to generate 0.96 times more return on investment than Clal Industries. However, Orbit Technologies is 1.04 times less risky than Clal Industries. It trades about 0.1 of its potential returns per unit of risk. Clal Industries and is currently generating about -0.02 per unit of risk. If you would invest 193,100 in Orbit Technologies on September 12, 2024 and sell it today you would earn a total of 124,500 from holding Orbit Technologies or generate 64.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbit Technologies vs. Clal Industries and
Performance |
| Timeline |
| Orbit Technologies |
| Clal Industries |
Orbit Technologies and Clal Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbit Technologies and Clal Industries
The main advantage of trading using opposite Orbit Technologies and Clal Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbit Technologies position performs unexpectedly, Clal Industries 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 Clal Industries will offset losses from the drop in Clal Industries' long position.| Orbit Technologies vs. Elbit Systems | Orbit Technologies vs. Bet Shemesh Engines | Orbit Technologies vs. Maytronics | Orbit Technologies vs. Bezeq Israeli Telecommunication |
| Clal Industries vs. Bio Meat Foodtech | Clal Industries vs. Orbit Technologies | Clal Industries vs. Dan Hotels | Clal Industries vs. Storage Drop Storage |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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