Correlation Between Orbit Technologies and Israel Shipyards
Can any of the company-specific risk be diversified away by investing in both Orbit Technologies and Israel Shipyards 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 Israel Shipyards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbit Technologies and Israel Shipyards, you can compare the effects of market volatilities on Orbit Technologies and Israel Shipyards 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 Israel Shipyards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbit Technologies and Israel Shipyards.
Diversification Opportunities for Orbit Technologies and Israel Shipyards
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Orbit and Israel is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Orbit Technologies and Israel Shipyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Shipyards 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 Israel Shipyards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Shipyards has no effect on the direction of Orbit Technologies i.e., Orbit Technologies and Israel Shipyards go up and down completely randomly.
Pair Corralation between Orbit Technologies and Israel Shipyards
Assuming the 90 days trading horizon Orbit Technologies is expected to generate 1.94 times less return on investment than Israel Shipyards. But when comparing it to its historical volatility, Orbit Technologies is 1.0 times less risky than Israel Shipyards. It trades about 0.03 of its potential returns per unit of risk. Israel Shipyards is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 713,365 in Israel Shipyards on August 29, 2024 and sell it today you would earn a total of 100,135 from holding Israel Shipyards or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbit Technologies vs. Israel Shipyards
Performance |
| Timeline |
| Orbit Technologies |
| Israel Shipyards |
Orbit Technologies and Israel Shipyards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbit Technologies and Israel Shipyards
The main advantage of trading using opposite Orbit Technologies and Israel Shipyards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbit Technologies position performs unexpectedly, Israel Shipyards 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 Israel Shipyards will offset losses from the drop in Israel Shipyards' long position.| Orbit Technologies vs. Ormat Technologies | Orbit Technologies vs. Multi Retail Group | Orbit Technologies vs. Nova | Orbit Technologies vs. B Communications |
| Israel Shipyards vs. Israel Corp | Israel Shipyards vs. Israel Opportunity | Israel Shipyards vs. Israel Op L | Israel Shipyards vs. Israel Discount Bank |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |