Correlation Between Peninsula and Nawi Brothers
Can any of the company-specific risk be diversified away by investing in both Peninsula 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 Peninsula and Nawi Brothers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peninsula Group and Nawi Brothers Group, you can compare the effects of market volatilities on Peninsula 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 Peninsula with a short position of Nawi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peninsula and Nawi Brothers.
Diversification Opportunities for Peninsula and Nawi Brothers
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peninsula and Nawi is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Peninsula Group 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 Peninsula 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 Peninsula Group 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 Peninsula i.e., Peninsula and Nawi Brothers go up and down completely randomly.
Pair Corralation between Peninsula and Nawi Brothers
Assuming the 90 days trading horizon Peninsula Group is expected to generate 1.18 times more return on investment than Nawi Brothers. However, Peninsula is 1.18 times more volatile than Nawi Brothers Group. It trades about 0.05 of its potential returns per unit of risk. Nawi Brothers Group is currently generating about 0.06 per unit of risk. If you would invest 14,598 in Peninsula Group on September 3, 2024 and sell it today you would earn a total of 5,782 from holding Peninsula Group or generate 39.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peninsula Group vs. Nawi Brothers Group
Performance |
| Timeline |
| Peninsula Group |
| Nawi Brothers Group |
Peninsula and Nawi Brothers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peninsula and Nawi Brothers
The main advantage of trading using opposite Peninsula and Nawi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peninsula 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.| Peninsula vs. Opal Balance | Peninsula vs. Nawi Brothers Group | Peninsula vs. Mizrahi Tefahot | Peninsula vs. SR Accord |
| Nawi Brothers vs. Bank Hapoalim | Nawi Brothers vs. Israel Discount Bank | Nawi Brothers vs. First International Bank | Nawi Brothers 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |