Correlation Between Sure Tech and Oron Group
Can any of the company-specific risk be diversified away by investing in both Sure Tech and Oron Group 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 Sure Tech and Oron Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sure Tech Investments LP and Oron Group Investments, you can compare the effects of market volatilities on Sure Tech and Oron Group 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 Sure Tech with a short position of Oron Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Oron Group.
Diversification Opportunities for Sure Tech and Oron Group
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sure and Oron is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP and Oron Group Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oron Group Investments and Sure Tech 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 Sure Tech Investments LP are associated (or correlated) with Oron Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oron Group Investments has no effect on the direction of Sure Tech i.e., Sure Tech and Oron Group go up and down completely randomly.
Pair Corralation between Sure Tech and Oron Group
Assuming the 90 days trading horizon Sure Tech Investments LP is expected to under-perform the Oron Group. But the stock apears to be less risky and, when comparing its historical volatility, Sure Tech Investments LP is 1.32 times less risky than Oron Group. The stock trades about -0.2 of its potential returns per unit of risk. The Oron Group Investments is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 93,300 in Oron Group Investments on August 29, 2024 and sell it today you would earn a total of 200.00 from holding Oron Group Investments or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sure Tech Investments LP vs. Oron Group Investments
Performance |
| Timeline |
| Sure Tech Investments |
| Oron Group Investments |
Sure Tech and Oron Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sure Tech and Oron Group
The main advantage of trading using opposite Sure Tech and Oron Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sure Tech position performs unexpectedly, Oron Group 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 Oron Group will offset losses from the drop in Oron Group's long position.| Sure Tech vs. Meitav Dash Investments | Sure Tech vs. IBI Inv House | Sure Tech vs. Mivtach Shamir | Sure Tech vs. Emilia Devel |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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