Correlation Between Safe T and Dor Alon
Can any of the company-specific risk be diversified away by investing in both Safe T and Dor Alon 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 Safe T and Dor Alon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe T Group and Dor Alon, you can compare the effects of market volatilities on Safe T and Dor Alon 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 Safe T with a short position of Dor Alon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe T and Dor Alon.
Diversification Opportunities for Safe T and Dor Alon
Very good diversification
The 3 months correlation between Safe and Dor is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Safe T Group and Dor Alon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dor Alon and Safe T 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 Safe T Group are associated (or correlated) with Dor Alon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dor Alon has no effect on the direction of Safe T i.e., Safe T and Dor Alon go up and down completely randomly.
Pair Corralation between Safe T and Dor Alon
Assuming the 90 days trading horizon Safe T Group is expected to generate 5.19 times more return on investment than Dor Alon. However, Safe T is 5.19 times more volatile than Dor Alon. It trades about 0.05 of its potential returns per unit of risk. Dor Alon is currently generating about 0.11 per unit of risk. If you would invest 41,200 in Safe T Group on August 28, 2024 and sell it today you would earn a total of 7,730 from holding Safe T Group or generate 18.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe T Group vs. Dor Alon
Performance |
| Timeline |
| Safe T Group |
| Dor Alon |
Safe T and Dor Alon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe T and Dor Alon
The main advantage of trading using opposite Safe T and Dor Alon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe T position performs unexpectedly, Dor Alon 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 Dor Alon will offset losses from the drop in Dor Alon's long position.| Safe T vs. One Software Technologies | Safe T vs. Arad Investment Industrial | Safe T vs. Victory Supermarket Chain | Safe T vs. Computer Direct |
| Dor Alon vs. Direct Capital Investments | Dor Alon vs. Safe T Group | Dor Alon vs. Israel China Biotechnology | Dor Alon vs. Biomedix Incubator |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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