Correlation Between Oron Group and Libra Insurance
Can any of the company-specific risk be diversified away by investing in both Oron Group and Libra Insurance 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 Oron Group and Libra Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oron Group Investments and Libra Insurance, you can compare the effects of market volatilities on Oron Group and Libra Insurance 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 Oron Group with a short position of Libra Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oron Group and Libra Insurance.
Diversification Opportunities for Oron Group and Libra Insurance
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oron and Libra is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Oron Group Investments and Libra Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libra Insurance and Oron Group 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 Oron Group Investments are associated (or correlated) with Libra Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libra Insurance has no effect on the direction of Oron Group i.e., Oron Group and Libra Insurance go up and down completely randomly.
Pair Corralation between Oron Group and Libra Insurance
Assuming the 90 days trading horizon Oron Group is expected to generate 11.94 times less return on investment than Libra Insurance. But when comparing it to its historical volatility, Oron Group Investments is 1.31 times less risky than Libra Insurance. It trades about 0.04 of its potential returns per unit of risk. Libra Insurance is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 72,004 in Libra Insurance on September 1, 2024 and sell it today you would earn a total of 15,286 from holding Libra Insurance or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oron Group Investments vs. Libra Insurance
Performance |
| Timeline |
| Oron Group Investments |
| Libra Insurance |
Oron Group and Libra Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oron Group and Libra Insurance
The main advantage of trading using opposite Oron Group and Libra Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oron Group position performs unexpectedly, Libra Insurance 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 Libra Insurance will offset losses from the drop in Libra Insurance's long position.| Oron Group vs. Shikun Binui | Oron Group vs. Ashtrom Group | Oron Group vs. Aura Investments | Oron Group vs. Shapir Engineering Industry |
| Libra Insurance vs. Brainsway | Libra Insurance vs. Mivne Real Estate | Libra Insurance vs. Photomyne | Libra Insurance vs. Israel Land Development |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |