Correlation Between Senvest Capital and Cascades
Can any of the company-specific risk be diversified away by investing in both Senvest Capital and Cascades 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 Senvest Capital and Cascades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senvest Capital and Cascades, you can compare the effects of market volatilities on Senvest Capital and Cascades 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 Senvest Capital with a short position of Cascades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senvest Capital and Cascades.
Diversification Opportunities for Senvest Capital and Cascades
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Senvest and Cascades is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Senvest Capital and Cascades in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cascades and Senvest Capital 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 Senvest Capital are associated (or correlated) with Cascades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cascades has no effect on the direction of Senvest Capital i.e., Senvest Capital and Cascades go up and down completely randomly.
Pair Corralation between Senvest Capital and Cascades
Assuming the 90 days trading horizon Senvest Capital is expected to generate 4.48 times less return on investment than Cascades. But when comparing it to its historical volatility, Senvest Capital is 1.6 times less risky than Cascades. It trades about 0.01 of its potential returns per unit of risk. Cascades is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,032 in Cascades on August 24, 2024 and sell it today you would earn a total of 102.00 from holding Cascades or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senvest Capital vs. Cascades
Performance |
| Timeline |
| Senvest Capital |
| Cascades |
Senvest Capital and Cascades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senvest Capital and Cascades
The main advantage of trading using opposite Senvest Capital and Cascades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senvest Capital position performs unexpectedly, Cascades 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 Cascades will offset losses from the drop in Cascades' long position.| Senvest Capital vs. Andlauer Healthcare Gr | Senvest Capital vs. HOME DEPOT CDR | Senvest Capital vs. US Financial 15 | Senvest Capital vs. SPoT Coffee |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |