Correlation Between Rimon Consulting and Augwind Energy
Can any of the company-specific risk be diversified away by investing in both Rimon Consulting and Augwind Energy 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 Rimon Consulting and Augwind Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rimon Consulting Management and Augwind Energy Tech, you can compare the effects of market volatilities on Rimon Consulting and Augwind Energy 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 Rimon Consulting with a short position of Augwind Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rimon Consulting and Augwind Energy.
Diversification Opportunities for Rimon Consulting and Augwind Energy
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rimon and Augwind is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rimon Consulting Management and Augwind Energy Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augwind Energy Tech and Rimon Consulting 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 Rimon Consulting Management are associated (or correlated) with Augwind Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augwind Energy Tech has no effect on the direction of Rimon Consulting i.e., Rimon Consulting and Augwind Energy go up and down completely randomly.
Pair Corralation between Rimon Consulting and Augwind Energy
Assuming the 90 days trading horizon Rimon Consulting Management is expected to under-perform the Augwind Energy. But the stock apears to be less risky and, when comparing its historical volatility, Rimon Consulting Management is 1.11 times less risky than Augwind Energy. The stock trades about -0.3 of its potential returns per unit of risk. The Augwind Energy Tech is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 46,100 in Augwind Energy Tech on November 27, 2024 and sell it today you would lose (3,910) from holding Augwind Energy Tech or give up 8.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rimon Consulting Management vs. Augwind Energy Tech
Performance |
| Timeline |
| Rimon Consulting Man |
| Augwind Energy Tech |
Rimon Consulting and Augwind Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rimon Consulting and Augwind Energy
The main advantage of trading using opposite Rimon Consulting and Augwind Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rimon Consulting position performs unexpectedly, Augwind Energy 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 Augwind Energy will offset losses from the drop in Augwind Energy's long position.| Rimon Consulting vs. Hiron Trade Investments Industrial | Rimon Consulting vs. One Software Technologies | Rimon Consulting vs. Clal Biotechnology Industries | Rimon Consulting vs. Nrgene Technologies |
| Augwind Energy vs. Scope Metals Group | Augwind Energy vs. YD More Investments | Augwind Energy vs. IBI Mutual Funds | Augwind Energy vs. Arad Investment Industrial |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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