Correlation Between TAT Technologies and Wesure Global
Can any of the company-specific risk be diversified away by investing in both TAT Technologies and Wesure Global 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 TAT Technologies and Wesure Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAT Technologies and Wesure Global Tech, you can compare the effects of market volatilities on TAT Technologies and Wesure Global 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 TAT Technologies with a short position of Wesure Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAT Technologies and Wesure Global.
Diversification Opportunities for TAT Technologies and Wesure Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TAT and Wesure is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding TAT Technologies and Wesure Global Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesure Global Tech and TAT Technologies 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 TAT Technologies are associated (or correlated) with Wesure Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesure Global Tech has no effect on the direction of TAT Technologies i.e., TAT Technologies and Wesure Global go up and down completely randomly.
Pair Corralation between TAT Technologies and Wesure Global
Assuming the 90 days trading horizon TAT Technologies is expected to generate 1.47 times less return on investment than Wesure Global. But when comparing it to its historical volatility, TAT Technologies is 1.4 times less risky than Wesure Global. It trades about 0.21 of its potential returns per unit of risk. Wesure Global Tech is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 10,660 in Wesure Global Tech on August 25, 2024 and sell it today you would earn a total of 33,040 from holding Wesure Global Tech or generate 309.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAT Technologies vs. Wesure Global Tech
Performance |
| Timeline |
| TAT Technologies |
| Wesure Global Tech |
TAT Technologies and Wesure Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAT Technologies and Wesure Global
The main advantage of trading using opposite TAT Technologies and Wesure Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAT Technologies position performs unexpectedly, Wesure Global 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 Wesure Global will offset losses from the drop in Wesure Global's long position.| TAT Technologies vs. Orbit Technologies | TAT Technologies vs. Tower Semiconductor | TAT Technologies vs. Elron Electronic Industries | TAT Technologies vs. Elbit Systems |
| Wesure Global vs. Bezeq Israeli Telecommunication | Wesure Global vs. Hiron Trade Investments Industrial | Wesure Global vs. IDI Insurance | Wesure Global vs. Rapac Communication Infrastructure |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |